Sears and Holiday Inn encountered difficult times because they did not stand out as the lowest in cost, highest in perceived value, or best in serving some market segment. Both companies are .
A) nichers
B) challenger risk-takers
C) middle-of the roaders
D) differentiated
E) formulated

(C) Middle of the roaders

Explanation:

According to the given scenario, both of the companies are middle of the roaders as both holiday Inn and the sears are acing the difficulties in their perceived value, lowest in the cost and also in the market segments.

 The main aim of the middle of the roaders is to target the consumers in the middle range of the spending or we can say that income.

 The middle of the roaders is the term which is used to refers to the action that is typically in the midway between the two different type extremes and it basically focuses on the niche marketing segments.  

Therefore, Option (C) is correct answer.  

1: b     the use of non-standard grammar

2: c     strong and willful.

its correct i took the test have a nice day: )