Mike opens a new gym in his hometown. He charges lower membership and monthly fees than what is offered by the other four gyms in town. This results in the migration of customers from the other gyms to Mike's gym. This enables the company to attract a lot of customers. This is an example of a(n) _____ strategy.
A) cost leadership
B) adaptive
C) differentiation
D) focused differentiation
E) pull

Question

Quizplus · Accepted Answer

Mike's strategy of charging lower fees than competitors to attract more customers is an example of a cost leadership strategy.

Mike Opens a New Gym in His Hometown