" When marketing research came back with the observation that customers were staying away from his bookstore because of a lack of services like gift cards, return policies and doing special orders, David was shocked. "We have the most generous policies of any store in the region. What more do they want

When marketing research came back with the observation that customers were staying away from his bookstore because of a lack of services like gift cards, return policies and doing special orders, David was shocked. "We have the most generous policies of any store in the region. What more do they want? Nobody asks about them or uses them." David and his bookstore are likely suffering from a:

A. knowledge gap.

B. standards gap.

C. retail policy gap.

D. delivery gap.

E. communications gap.

A. knowledge gap.

Explanation:

Knowledge gap is term in business or marketing which describes the difference between the customers' expectations of the service and the company's perception of those expectations.

Hence, knowledge gap arises when a management fails to understand exactly the expectations of customers.

Knowledge gap could occur due to various reasons, some of which are:

1. Lack or inadequate market research.

2. Lack of management and customer interaction.

3. Inability to heed customer complaints.

Hence, in this case, David and his bookstore are likely suffering from a KNOWLEDGE GAP.

they allow producers to sell their products more cheaply than foreign competitors. - ( c.)

answer; encouraging the development of innovations by firms attempting to break a monopoly; (creative destruction)