FaveMart, a discount chain store, offers the same basic products in all of its stores. It has a state-of-the-art distribution network, and it ships massive quantities of products to its stores around the world. Due to large quantities, the shipping is very economical, and the store is able to offer lower prices than competing retailers. FaveMart follows a _____ approach for innovation.
A) market orientation
B) monopolistic orientation
C) production orientation
D) customer orientation

Question

Quizplus · Accepted Answer

FaveMart's focus on a state-of-the-art distribution network and shipping massive quantities of products to its stores suggests that it follows a production orientation for innovation. This orientation emphasizes efficiency in production and distribution, with a focus on achieving economies of scale and reducing costs. FaveMart's ability to offer lower prices than competing retailers is a result of this approach. The other options, such as market orientation and customer orientation, prioritize understanding the needs and wants of the customer and adapting to the market, which do not seem to be central to FaveMart's approach.

FaveMart, a Discount Chain Store, Offers the Same Basic Products