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:

Decrease in Inventory

A reduction in the amount of goods available for sale or use, often reflected in financial statements and can indicate sales performance or a strategy to lower inventory levels.

Acquisition of Treasury Stock

The process by which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

Investing Activities

Financial activities related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Acquisition of New Securities

The process by which a company or individual buys new stocks, bonds, or other forms of investment securities to add to their portfolio.