Final answer:
Benetton, IKEA, and Gap employ a retailing strategy characterized by global standardization with some adaptation to local markets, maintaining a consistent brand image while catering to local variations. Their approach reflects an evolution from historical retail practices, with a current focus on brand integrity and global appeal amid monopolistic competition and increased consumer access due to technological advancements and globalization. Option 2 is correct answer.
Step-by-step explanation:
Within the framework of retailing strategies, companies like Benetton, IKEA, and Gap have developed unique approaches to engage with global markets. These brands illustrate an adaptation of the department store model, an advance from the historical small, family-run shops and peddlers where bargaining and limited advertising were the norms. As the department store evolved, so did the practice of fixed pricing, a wider variety of goods, and the growth of national branding and advertising.
Benetton, IKEA, and Gap employ a retailing strategy that can be characterized as global standardization with some adaptation to local markets (B). This means that while they project a consistent brand image and product line across different markets, they also recognize the need to adapt certain elements to meet local cultural preferences and regulations. This strategy maintains their brand integrity and global appeal while also catering to some degree of local variation, which is necessary in today's globalized economy.
The presence of monopolistic competition within retail markets, as exemplified by the diversity of clothing stores in the Mall of America, underscores the importance of product differentiation and the variety available to consumers. Companies like Benetton, IKEA, and Gap contribute to this differentiated landscape with their distinct brand identities and marketing approaches.
Despite the rise of technology and online sales, these companies still maintain a significant physical store presence, counteracting the notion of exclusive reliance on online sales with minimal physical stores (D). The intersection of technological advancements and globalization has broadened consumer access and intensified competition, compelling traditional retailers to evolve their retail strategies.