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

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Definitions:

Sympathetic Nerve

A component of the autonomic nervous system that readies the body for activities associated with stress.

Carotid Baroreceptors

Pressure-sensitive sensory receptors located in the carotid arteries that help regulate blood pressure by detecting changes in arterial pressure.

Decrease in Blood Pressure

A reduction in the force exerted by circulating blood upon the walls of blood vessels.

Vagus Nerve

The tenth cranial nerve that innervates many organs, including the heart, lungs, and digestive tract, playing a critical role in the parasympathetic nervous system.