Final answer:
To increase footwear sales with 500 models available, companies should consider increasing the advertising budget, improving customer service, lowering prices, or expanding the product line. There is no single strategy for success as markets vary, but advertising tends to have a positive impact on sales in monopolistically competitive markets.
Step-by-step explanation:
A company that opts to boost sales of branded footwear by offering a large selection of models and styles, specifically 500, should consider multiple strategies, as there is no one-size-fits-all approach to increasing sales. A significant factor to consider would be increasing the advertising budget. This could create more awareness and interest in the plethora of options available to consumers. Advertising can particularly be effective in a monopolistically competitive market, where one goal is to differentiate the company's products from those of competitors. Thereby, a firm's perceived demand curve can become more inelastic, or the demand can increase, leading to potentially higher profits.
However, competition in these markets is fierce, and simply advertising is not always enough. Customer service improvement can enhance the shopping experience and foster customer loyalty. Lowering prices can also be a strategy, though it may affect profit margins. Expanding the product line might seem redundant with 500 models already available, unless the expansion refers to diversifying into complementary products or tailoring offers to meet specific needs within the existing models.
Lastly, it's worth noting that a perfect mix likely includes several strategies. For example, competitive markets are known to respond to aggressive advertising campaigns in the short run, and though they do not guarantee long-term success, they can significantly boost immediate sales.