Adoption of a low-cost strategy may lead to a decrease in which of the following?

Question

Quizplus · Accepted Answer

Adopting a low-cost strategy often requires streamlining operations and reducing flexibility to save costs. This can lead to a decrease in flexibility. However, it may increase volume as customers are attracted to lower prices. It may also lead to an increase in customer complaints and warranty claims if the quality of the product or service is compromised due to cost-cutting measures.

Adoption of a Low-Cost Strategy May Lead to a Decrease