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.

Question

Quizplus · Accepted Answer

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.

The Club Is a Local Hair Salon and Day Spa