While low-cost providers are champions of frugality,they:
A) seldom hesitate to spend aggressively on resources and capabilities that promise to drive costs out of the business.
B) are never hesitant to eliminate costs so as to remain the low-cost provider.
C) are not blinded by cost reduction,preferring product differentiation strategies that reflect cost-reductions rather than buyer needs and wants.
D) are also champions of profitability by having prices lower than costs to gain volume gains.
E) always anticipate negative feedback from stakeholders because of their spending habits.

Question

Quizplus · Accepted Answer

Low-cost providers understand that investing in resources and capabilities that drive costs out of the business is essential to maintaining their competitive advantage. This means that they may spend aggressively in the short term to achieve long-term cost savings.

While Low-Cost Providers Are Champions of Frugality,they