The correct answer is the following.
The methods of competition are:
A store that offers a coupon for the purchase of its sandwiches is to compete: Promotion.
A bakery that creates a new type of dessert is using to compete: Innovation.
A barber shop that hires a better barber and reduces wait times is using to compete: quality improvement.
Offering coupons are a good way to use promotion, one of the components of the Marketing Strategy, as well as Public Relations and advertising. If consumers get coupons, they probably are likely to use them and buy the product.
The bakery that creates a new type of dessert is innovations. It is going one step further than competence, creating a new option for consumers, offering something different.
The barber shop is improving its operations through quality improvement. Overseeing operations have allowed the barber shop to realize that there was a problem with wait times, so hiring a new worker reduces that time and improves the operation and client satisfaction.