The Primary Objective of Encirclement Strategy Is To

question 4

Multiple Choice

The primary objective of encirclement strategy is to:

• A)attract significant share of new customers in specialised, smaller segments
• B)capture a modest share of repeat purchases in several market segment
• C)stimulate current customers to purchase superior new offering
• D)capture substantial repeat purchases from target competitor's current customers

---

Definitions:

Time To Maturity

The duration remaining until the final payment date of a loan, bond, or other financial instrument, at which point the principal (and usually the final interest payment) is due to be paid.

Interest Rate Risk

The risk that the value of an investment will decrease due to a change in interest rates.

High Coupon Bond

A bond that offers a relatively high interest rate (or coupon rate) compared to the current prevailing rates of other similar bonds.

Interest Rate Sensitivity

A measure of how much the price of an investment, particularly bonds, changes in response to changes in interest rates.