Final answer:
The term describing why a customer chooses one company over another is the Value Proposition. It represents a business's unique value and may involve specialized products or services as a core competency. Effective value propositions are critical in competitive markets for gaining and retaining customers. The correct option is B.
Step-by-step explanation:
The term that describes the reason why a customer would turn to one company over another is B. Value Proposition. A company's value proposition is what differentiates it from its competitors and is a core part of its overall business strategy. This could relate to a variety of aspects such as price, service quality, or specific product features. A core competency, such as specializing in a few products, is often central to a company's value proposition, enabling it to be more successful than firms attempting to offer a wide range of products.
Understanding the value proposition is crucial for businesses in competitive markets. For instance, in the scenario where Firm A moves next to Firm B to capture market share, both firms will ultimately try to outdo each other not just through location but through offering superior value propositions to attract and retain customers.
Hence, Option B is correct.