Future Business Leaders of America (FBLA) Hospitality Management Practice Test

What does a competitive advantage enable a business to do?

1. Increase operational costs

2. Enhance value to consumers

3. Reduce customer service quality

4. Limit product offerings to a niche market

The correct answer is: Enhance value to consumers

A competitive advantage enables a business to enhance value to consumers by providing something unique that differentiates it from competitors. This can include aspects like better product quality, superior customer service, innovative features, or lower pricing. When a business offers enhanced value, it attracts more customers, improves satisfaction, and fosters loyalty, thereby positioning itself more favorably in the market. In essence, the idea behind competitive advantage is to leverage strengths that appeal directly to consumer needs and preferences, thereby creating a more compelling proposition than what is available from competitors. This approach supports long-term growth and profitability by aligning the business offerings with consumer desires, ultimately leading to a stronger market position.