ChaptersIndigo

question 27

Multiple Choice

Chapters.Indigo.ca keeps track of user preferences for book and CD purchases and can recommend titles purchased by others to its customers.Strong linkages to customers and suppliers increase switching costs.Chapters.Indigo.ca is utilizing which source of competitive advantage?

• A)low-cost leadership
• B)product differentiation
• C)focus on market niche
• D)strengthening customer and supplier intimacy

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Definitions:

Motivated

The inner drive or psychological force that compels an individual towards a specific goal or action.

Equity Theory

A theory in social psychology that explains how individuals assess their own input-to-outcome ratios in comparison to others', in terms of fairness.

Outcome

The result or effect of an action, situation, or event.

Job Security

The guarantee or chance that someone will keep their position without the danger of losing their job.