Exercise 7.1 – Defining Monopolistic Competition

Size:	Small Company	Medium Company	Large Company
Features:	Landscaping Company	Provincial Car oil change franchise	National Home Depot Franchise
Differentiated products	Different services offered	Expertise on different make of cars	Range of products available for customers under one roof
Control over price	Little control, can vary with diff. services provided	Some control, can vary with different car types	Only for exclusive products that are not readily available
Mass advertising	Community flyers and signs	Newspaper and radio adds	TV campaigns
Brand name goods	NO	Are possible	Yes and generic goods as well
Customer Loyalty	Not really, as many substitutes are available	Can be with the kind of service provided	Medium to High depending upon what customer is looking to buy.
Entry in Market	Easy entry into the market	Relatively easy but not very easy	Little hard but sill doable at a smaller scale
Competition	Large amount of competition	Competition from local and national chains	Competition from other national chains