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True Cinemas Inc

Question 7

Multiple Choice

True Cinemas Inc.and Digi Future Inc.are two companies that own and run movie theaters in malls and other commercial areas.While True Cinemas Inc.pursues a cost-leadership strategy, Digi Future Inc.adopts a differentiation strategy.Which of the following statements is most likely true of this scenario?


A) True Cinemas will charge a premium price for its customers while Digi Future will implement everyday low pricing.
B) Digi Future and True Cinemas will not be direct competitors to each other and their customer segments will overlap very little.
C) Digi Future will keep its customer service at an acceptable level while True Cinemas will provide superior customer service.
D) True Cinemas and Digi Future will use a similar approach to create value for customers by attempting to offer everything to everybody.

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