Question

What kind of strategy is being used when a company gives away free cookbooks at home shows and the recipes call for specific items that the company sells?

With the development of large supercenter stores where consumers can fulfill all their needs in one location, a smaller hardware store is finding it harder to compete for business. It wants to bring in new customers and maintain loyalty among regular customers.

a. The small hardware store should relocate in closer proximity to the large supercenter in order to draw attention to its brand and the services it provides.

b. The small hardware store should implement a customer loyalty program where regular shoppers and those who buy large quantities are entered in prize drawings.

c. The small hardware store should create an online do-it-yourself guidebook with strategies for home repair and offer online customer support for projects and using its products.

d. The small hardware store should write jingles that play regularly over the radio and through online music stores or websites in order to build recognition for itself and its brand.

Answer 1

Option b. The small hardware store should implement a customer loyalty program where regular shoppers and those who buy large quantities are entered in prize drawings.

Step-by-step explanation:

The strategy being used when a company gives away free cookbooks at home shows and the recipes call for specific items that the company sells is called an "incentive strategy." The company is using the cookbook as an incentive to encourage potential customers to buy its products. By giving away the cookbook for free, the company is hoping to generate interest in its products and increase sales.

For the small hardware store competing with a large supercenter, option b. would be the most effective strategy. Implementing a customer loyalty program would incentivize regular shoppers to continue choosing the small hardware store over the supercenter. The program could offer rewards, such as discounts or free merchandise, to customers who reach certain purchasing thresholds or make frequent purchases. This would encourage customer loyalty and incentivize customers to continue shopping at the small hardware store even though there is a larger supercenter nearby.