DECA Retail Merchandising Practice Exam

Which of the following describes the degree to which a new fashion is better than competing brands?

1. Observability

2. Market penetration

3. Relative advantage

4. Diversification

The correct answer is: Relative advantage

The degree to which a new fashion is perceived to be better than competing brands is known as relative advantage. This concept pertains to the benefits that come with adopting a new innovation compared to existing alternatives, emphasizing how much more favorable the new option is. When consumers recognize that a new fashion offers significant improvements—such as better quality, enhanced style, or superior functionality—they are more likely to embrace it over other brands. This understanding is essential in fashion marketing, as it highlights the importance of demonstrating why a new product is a worthwhile choice for consumers. Establishing a clear relative advantage can influence consumer decisions and drive the success of a new fashion line in a competitive market. Observability generally refers to how visible the benefits of an innovation are to others, market penetration relates to the extent of market presence or share a product has, and diversification involves expanding product lines rather than comparing the benefits of different options.