Ariel owns a company that markets high-quality office supplies to businesses. She faces stiff competition from larger firms like Staples. Which of the following competitive strategies would probably work best for Ariel?
A) Keep costs as low as possible by offering a no-frills approach with little or no extra services.
B) Develop a skimming pricing strategy.
C) Utilize a high-low approach to pricing with a higher break-even point.
D) Focus on nonprice competition by offering better service with customers and work on building good customer relationships.

Question

Quizplus · Accepted Answer

It is usually difficult for small firms to compete against larger firms solely on the basis of price. It is usually easy for larger firms to match price cuts, but much harder to match the image of a friendly responsive company that knows its customers on an individual basis. Achieving this type of relationship and providing superior service can allow small firms to charge high enough prices to prosper.

Ariel Owns a Company That Markets High-Quality Office Supplies to Businesses