A Large Software Manufacturer Attempts to Lock in Customers by Making

question 77

Multiple Choice

A large software manufacturer attempts to lock in customers by making it difficult for them to substitute their software with one from another company. The strategy used by the company is referred to as ________.

• A) switching costs strategy
• B) low cost operation strategy
• C) standardization strategy
• D) marketing strategy
• E) bait-and-switch strategy

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Definitions:

Contract

A legally binding agreement between two or more parties that outlines the terms and conditions for an exchange of goods or services.

Risk of Loss

Refers to the possibility of an asset's value decreasing due to changes in market conditions or other unforeseen circumstances.

Sales Contract

A legal agreement between a buyer and seller outlining the terms of a sale of goods or services.

Insure

To provide or obtain insurance coverage against risk or loss.