Angie owns a small company that markets high-quality office supplies to businesses. Angie faces stiff competition from some much larger firms like Office Depot. Which of the following competitive strategies would probably work best for Angie?
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

As a small company facing tough competition from larger firms, focusing on nonprice competition by providing better service and building good customer relationships would be the best choice for Angie. This would differentiate her business from the larger competitors and provide customers with a unique value proposition. Offering a no-frills approach or skimming pricing strategy might not be feasible for a small business, and a high-low pricing approach might not be sustainable in the long term.

Angie Owns a Small Company That Markets High-Quality Office Supplies