Final answer:
The best way to differentiate a retail store from competitors is by satisfying customer needs and wants more effectively through differentiated products and services.
Step-by-step explanation:
The easiest way for a retailer to differentiate itself in the eyes of consumers involves various strategies. However, the most fundamental method is to satisfy the customer's needs and wants better than the competition. This can be achieved through differentiated products, which can be unique in their physical aspects, location, intangible aspects like guarantees and reputation, as well as the consumer's perception shaped by advertising. Differentiation can also involve services like free delivery or loans for product purchases.
Selling below cost or using a unique name might attract attention, but doesn't necessarily establish a differentiated brand in the consumer's mind compared to consistent satisfaction of their needs and wants. Market segmentation is another tactic that can be used to target specific customer groups within the heterogeneous consumer bases in America.