Jared King is starting a firm in the electronic games industry. The firm will produce games similar to popular games on the market, but they won't be as sophisticated and will be priced at the low end of the market. Jared has chosen the generic strategy referred to as:
A) price reduction
B) differentiation
C) quality plus
D) cost leadership
E) cost differentiation

Question

Quizplus · Accepted Answer

Jared's chosen strategy of producing games at a lower cost and selling them at a lower price is an example of cost leadership. This strategy focuses on lowering production costs to offer products at lower prices, which appeals to price-sensitive customers.

Jared King Is Starting a Firm in the Electronic Games