Asked by Erika Overton on Jun 22, 2024
Verified
The Club is a local hair salon and day spa that caters to an upper-middle class clientele. Although price competition in the local area has been increasing, the owners of The Club have decided to focus their marketing efforts on quality, service, and value, and to resist the temptation to compete on price. In pursuing this non-price strategy, managers of The Club are ascribing to which of the following assumptions?
A) Customers see all salons as being about the same.
B) The market for salon services is very price sensitive.
C) Customers of The Club are so loyal that price competition is not necessary.
D) It is difficult for competitors to copy The Club's differentiating characteristics.
E) The managers are ascribing to all of these assumptions.
Non-price Strategy
Marketing tactics that do not involve altering the price, such as product differentiation, branding, and quality improvements.
Upper-middle Class
A socio-economic group characterized by high educational attainment, professional careers, and relatively high income.
- Understand the implications of non-price competition strategies on market positioning.
Verified Answer
TD
THE DR EXPERIENCE PODCASTJun 29, 2024
Final Answer :
D
Explanation :
The Club's strategy to focus on quality, service, and value, rather than competing on price, implies that they believe their differentiating characteristics (such as superior service or unique offerings) are difficult for competitors to replicate. This approach suggests they are banking on these unique qualities to maintain a competitive edge, rather than engaging in a price war.
Learning Objectives
- Understand the implications of non-price competition strategies on market positioning.
Related questions
Firms That Want to Promote an Image of Superior Quality ...
In Many High-End Resort Markets, Westin Hotels Compete Directly with ...
Matthew Told the Manager of His Gas Station to Always ...
In What Type of Pricing Customers Are Encouraged to Believe ...
Which of the Following Is Characteristic of a Purely Competitive ...