When Is Reputation a Most Effective Entry Barrier

question 11

Multiple Choice

When is reputation a most effective entry barrier?

• A)When the incumbent has incurred them and the entrant has not
• B)When incumbents have long-standing relationships with suppliers and customers
• C)When channels are few and hard to replicate
• D)When a firm has a reputation for toughness or competes in multiple markets
• E)When marginal costs are low and flooding the market causes large price reductions

---

Definitions:

Developmental Period

A timeframe in an individual's life during which significant growth, changes, and maturation occur.

Demanding

Requiring a lot of effort, skill, or attention to detail; often associated with challenging situations or requests.

Social Construction

The theory that much of what is perceived as "reality" is shaped through cultural and interpersonal consensus rather than inherent qualities.

Adolescence

The transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood (age of majority).