Correct Response: D. Of the responses listed, the introduction of a discount jewelry outlet in a nearby town represents significant competition and is likely to have the greatest effect on the store's marketing strategy. The small store can expect price competition and product competition, and will need to rethink how they price and promote their goods to maintain their customer base and sales. A store renovation may attract some new customers and provide better product display, but it will not require a significantly new strategy (A). If the store cannot carry certain high-end items due to price increases then it doesn't cater to the high-end market niche, so this change will have little effect on their strategy (B). An increase in short-term demand may require that the store boost inventory of some products, but it will not require a new promotional strategy (C).
