Question

Myra wanted to purchase a vase as a wedding gift. Pier 1 Imports offers a better assortment and slightly lower prices, but she immediately went to her local gift shop instead of Pier 1 Imports. This is an example of?

1) a SWOT analysis.
2) strategic control.
3) direct competition.
4) retail perception.
5) customer loyalty.

Answer 1

Myra's preference for her local gift shop over Pier 1 Imports, despite a better selection and prices at Pier 1, exemplifies customer loyalty. This illustrates how personal preferences and relationships can impact consumer choices and market competition.

Step-by-step explanation:

Myra's decision to purchase a vase from her local gift shop rather than Pier 1 Imports, despite the latter offering a better assortment and slightly lower prices, is an example of customer loyalty. Customer loyalty refers to customers' preference for a particular business or brand, often due to positive past experiences, personal connections, convenience, or a sense of supporting the community. When a consumer demonstrates loyalty, they may choose a familiar seller over others, even if there are economic incentives to do otherwise. This behavior has a significant impact on market competition and can influence the choices made by consumers.