DECA Retail Merchandising Practice Exam

What type of competition occurs among similar types of stores?

1. Intertype competition

2. Intratype competition

3. Direct competition

4. Indirect competition

The correct answer is: Intratype competition

Intratype competition occurs among similar types of stores that offer the same kinds of products or services within the same market or industry. For example, various grocery stores competing against one another in a specific area, or several clothing retailers that sell similar styles, would be engaging in intratype competition. This kind of competition is significant because it often drives pricing strategies, product offerings, and customer service efforts as each retailer strives to attract and retain customers from a shared pool. The focus here is on rivalry between businesses of the same category, which can enhance customer experience and influence purchasing decisions. Other types of competition, such as direct competition, refers to businesses that compete for the same customer base through similar products but might span multiple types like convenience stores versus supermarkets. Indirect competition involves businesses that are not direct competitors but may offer alternative products or services that fulfill the same customer needs. Intertype competition generally refers to competition among different types of retailers.