Question

A business determines that 75% of its customers are satisfied. This business also learns that 80% of a leading competitor's customers are satisfied. If this business implements a program to reach 80% customer satisfaction, this is called ________.

A) managing to the averages
B) competitive parity
C) forward-looking indicator
D) focused value proposition
E) wide-angle view of customer satisfaction

Answer 1

When a business implements a program to match a competitor's customer satisfaction level, it is called 'competitive parity'. This strategy is used to maintain market share and competitive standing.

Step-by-step explanation:

If a business determines that by implementing a program they can increase their customer satisfaction rate to match that of a leading competitor, this strategy is referred to as competitive parity. Competitive parity involves ensuring that a company's performance, in terms of products, services, or customer satisfaction, is on par with its main competitors. By targeting an 80% customer satisfaction rate, the business aims to eliminate this particular competitive disadvantage. Businesses often engage in such strategies as a means to maintain their market share and prevent customers from turning to their competitors.