DECA Retail Merchandising Practice Exam

Which term describes the frequency and intensity of competitive actions?

1. Competitive rivalry

2. Market positioning

3. Consumer behavior

4. Brand loyalty

The correct answer is: Competitive rivalry

The term that describes the frequency and intensity of competitive actions is competitive rivalry. This concept involves the ongoing competitive dynamics between businesses within a specific market. Competitive rivalry encompasses how often competitors engage in actions such as launching new products, adjusting prices, or increasing marketing efforts to gain market share. In essence, it reflects the intensity of competition and how frequently firms take strategic actions in response to one another. Market positioning refers to how a brand or product is perceived in relation to competitors, focusing more on perceptions than actions. Consumer behavior encompasses the decisions and actions of consumers when they purchase goods, which does not directly address competitive actions. Brand loyalty describes the tendency of consumers to continue buying the same brand over time, which is a result of effective competitive strategies but does not involve the actions of the competitors themselves. Therefore, competitive rivalry is the most fitting term for describing the frequency and intensity of competitive actions.