In a competitive market, a cost leadership strategy targets the industry's __________ customers.

• A. niche-seeking
• B. price-sensitive
• C. high-income
• D. brand-loyal

Answer: (B)

Verified step by step guidance

1. Understand the concept of a cost leadership strategy: it focuses on becoming the lowest-cost producer in the industry to offer products at lower prices than competitors.
2. Recognize that in a competitive market, customers who are most responsive to price changes are called price-sensitive customers.
3. Analyze the options: niche-seeking customers look for specialized products, high-income customers may prioritize quality or brand over price, and brand-loyal customers prefer specific brands regardless of price.
4. Conclude that a cost leadership strategy primarily targets price-sensitive customers because they are motivated by lower prices and cost savings.
5. Therefore, the blank should be filled with 'price-sensitive' to correctly describe the target customers of a cost leadership strategy.