Techniques Used by Firms to Raise the Switching Costs for Its

question 346

Multiple Choice

Techniques used by firms to raise the switching costs for its customers are called

• A) teaser strategies.
• B) product differentiation.
• C) lock-in strategies.
• D) lock-out strategies.

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Definitions:

Interest Rate

The percentage of the principal amount charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage rate (APR).

Equivalent

Equal in value, amount, function, meaning, etc., to something else.

Preceding January

The January that occurred immediately before the current date or specified event.

Retail Store

A business establishment that sells goods and services directly to consumers, typically at a markup from wholesale prices.