The Competitive Strategy of Locking in Customers by Making It

question 5

True/False

The competitive strategy of locking in customers by making it difficult for them to move to another product is called establishing high switching costs.

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Definitions:

Maturing

The process by which a financial instrument reaches its due date and the principal is required to be repaid.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the principal.

Economic Equivalent

A financial concept that refers to the equivalence in value between different sums of money received or paid at different times, based on a specified interest rate.

Previous March

Refers to March of the preceding year or the last March that occurred before the current date.