Tweeter’s philosophy is based on a commitment to quality, service and value, and because they specialized in mid-to-high end electronics, their products were sold at a premium. This resulted in Tweeter being identified as a high priced retailer in the eyes of consumers. However, as the industry grew, a large number of low end retailers entered the market; this created an increasingly competitive environment, as the economy made more consumers conscious of price. Eventually, Tweeter’s profitability began to suffer. They responded by introducing some low-end brands to their product list that were sold at comparable prices to other larger competitors, but because Tweeter’s perception was still associated as high priced, many consumers’ habits remained unchanged. The company again responded, and in August 1993, they eventually changed their strategy to one in which they continued their commitment to high quality and service, but shifted to an “Every Day Fair Pricing” strategy (P. 7) Tweeter’s Automatic Price Protection was introduced. This guaranteed that consumers would receive a refund if a competitor advertises the same product at a lower price. Ultimately, the shift led to a boost in their financial performance. “Sales almost doubled in the three years since the institution of the new strategy, from $43.7 million in FY 1993 to a projected $82.3 million in FY 1996.” (P. 8) One can easily argue that their new strategic action caused consumers to realize that they were a major price competitor.

Tweeter is best-suited to serve the Quality/Service consumer, this group desires the best value over the lowest possible price, and are willing to spend more for such products. Furthermore, because Tweeter didn’t initially cater to the “consumer purchase,” and instead focused more on medium and upper-tier electronics, they would be best-suited for this niche. A