Question

Country Fresh Ice Cream Shoppe has several competitors in the area. To have a competitive advantage, the company only uses fresh fruit delivered daily to make its sundaes and other ice cream treats -- the other ice cream stores in town use frozen fruit in their products. What is the company focusing on to have a competitive advantage?

a) quantity
b) quality
c) responsiveness
d) efficiency

Answer 1

Country Fresh Ice Cream Shoppe focuses on quality by using fresh fruits to gain a competitive advantage, seeking to appeal to customers who prioritize freshness and taste.

Step-by-step explanation:

The Country Fresh Ice Cream Shoppe is focusing on quality to gain a competitive advantage. By using fresh fruit delivered daily to create their ice cream sundaes and treats, they differentiate themselves from competitors who use frozen fruit. This focus on high-quality ingredients is likely to appeal to customers who value freshness and taste over other factors like quantity or price. In a market with monopolistic competition, where firms can enter easily if they see an incumbent earning positive economic profits, differentiating on quality can be a crucial strategy that provides a competitive edge. Quality is often associated with a firm's reputation, which can be a significant draw for customers and help to maintain customer loyalty.