Best-cost provider strategies are appealing in those market situations where
A)buyers are more quality-conscious than price-conscious.
B)diverse buyer preferences make product differentiation the norm and where a large number of value-conscious buyers can be induced to purchase mid-range products.
C)there are numerous buyer segments,buyer needs are diverse across these segments,only a few of the segments are growing rapidly,and sellers' products are strongly differentiated.
D)buyers are more performance-conscious than value-conscious.
E)a company is positioned between rivals who have ultra-low prices and rivals who have top-notch products in terms of both quality and performance.

Question

Quizplus · Accepted Answer

Best-cost provider strategies are most suitable in markets where buyers have diverse preferences and are price-sensitive. In such markets, a company can offer mid-range products that meet the essential needs of customers at a relatively lower cost while still maintaining the quality and performance of the product. This approach can help the company attract a large number of value-conscious customers who are willing to pay more than the lowest price but are not willing to pay a premium for top-notch products. Therefore, option B is the most appropriate choice. Options A, C, D, and E do not reflect the market situations that best support a best-cost provider strategy.

Best-Cost Provider Strategies Are Appealing in Those Market Situations Where