Question

A low-cost provider's product does NOT have to always:

A. contain enough attributes to be attractive to prospective buyers.
B. suggest strong rather than weak product differentiation.
C. signal value to buyers.
D. provide high margins per unit sold to bring in enough unit sales.
E. be valuable and appealing to a wide range of buyers.

Answer 1

Low-cost provider's product does not have to provide high margins per unit sold.

Step-by-step explanation:

A low-cost provider's product does NOT have to always provide high margins per unit sold to bring in enough unit sales.

Low-cost providers typically focus on reducing costs and offering products at lower prices than their competitors. This strategy allows them to attract price-sensitive buyers who prioritize affordability over other factors, such as high margins per unit sold.

For example, a low-cost airline may offer cheap tickets with lower profit margins per seat, but they can generate enough unit sales to make up for the lower margins by filling up more flights and attracting a larger customer base.