Western Governors University (WGU) BUS2080 D081 Innovative and Strategic Thinking - Practice Test

The strategy of selling products at low prices to encourage repurchase is best described as market penetration. This strategy aims to attract customers by offering products at lower prices, making them more appealing in a competitive market. By reducing prices, the company not only attracts customers but also increases its market share. Market penetration focuses on selling existing products to existing markets and often involves promotional pricing strategies.

Cost-leadership is primarily about achieving the lowest operational costs in the industry, allowing a company to offer lower prices. While it can result in lower prices, the emphasis is on achieving cost efficiency rather than specifically aiming to drive repurchase through pricing alone.

Segmentation refers to the process of dividing a market into distinct groups of buyers with different needs or characteristics, and target differentiation involves tailoring products to specific segments to create unique offerings. These strategies do not directly relate to the concept of selling at low prices to drive repurchase.

Focusing on market penetration highlights the company’s goal of increasing its customer base and encouraging repeat purchases through competitive pricing strategies.

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