FunText Is a Company That Owns an App Used for Text

question 16

Multiple Choice

FunText is a company that owns an app used for text messaging. It recently offered a membership extension of six months without any additional charges to its existing customers who had registered for a three-year membership. By doing this, which competitive strategy did FunText implement?

• A) creation of a new service
• B) product differentiation
• C) locking in customers
• D) locking in suppliers

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Definitions:

Extraneous Variables

Elements not of interest in a research study that could impact the results if not properly controlled.

Experimental Groups

Groups in a study that receive the treatment or intervention, to be compared against control groups.

Control Groups

Groups in experimental research that do not receive the treatment or intervention being tested, used as a benchmark to measure the effect of the treatment.

Confounded

Mixed or muddled feelings or situations where the cause and effect become unclear or complicated.