Final answer:
The coffee chain's strategy of offering free pastries with coffee purchases is a strategic marketing tactic and a customer service enhancement designed to differentiate the business and attract customers away from competitors in a competitive market.
Step-by-step explanation:
When a coffee chain began offering complimentary pastries with every cup of coffee, this was a strategic attempt to increase its sales and compete more effectively with its rivals. This is an example of a strategic marketing tactic, which falls under the broader umbrella of business strategies that firms employ to gain a competitive edge in the market. This action can also be viewed as an enhancement in customer service, as the coffee chain added value to the customer's purchase and improved the overall customer experience.
This type of strategy is akin to algorithmic problem-solving in that it follows a calculated approach to achieving a specific goal—in this case, improved sales and market share. Just as with game theory where players factor in the strategies of their opponents, this coffee chain considered the actions of its competitors before determining its own course of action. By offering an additional product without extra cost, the chain differentiated itself from its competitors, much like businesses in a state of monopolistic competition, who aim to lure customers with unique offerings or superior service.