Save-A-Lot has become one of the most successful grocery chains by serving the poor and offering low prices. This is an example of
A) focus strategy.
B) premium pricing.
C) product differentiation
D) cost leadership

Question

Quizplus · Accepted Answer

Save-A-Lot's success in serving the poor and offering low prices is indicative of a cost leadership strategy, where the focus is on reducing costs in order to offer low prices to customers. This is in contrast to a focus strategy, which would target a specific niche market, or product differentiation, which would focus on offering unique and higher-quality products at a higher price point. Premium pricing, on the other hand, would involve charging higher prices for higher-quality products, which is not the case for Save-A-Lot.

Save-A-Lot Has Become One of the Most Successful Grocery Chains