In International Business, an Advantage of Being a Late Entrant

question 16

Multiple Choice

In international business, an advantage of being a late entrant in a foreign market is the ability to

• A) create switching costs that tie customers into products or services.
• B) capture demand by establishing a strong brand name.
• C) build sales volume and ride down the experience curve before early entrants.
• D) ride on an early entrant's investments in learning and customer education.
• E) create a cost advantage over first movers.

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Definitions:

Gradual Buildup

The slow accumulation or increase of something over time.

Foot-in-the-door Technique

A persuasion strategy that involves getting a person to agree to a small request as a precursor to making a larger request.

Bait-and-switch Technique

A deceptive marketing strategy where a seller lures customers by advertising a product or service at a low price, then reveals that the specific item is no longer available, offering a more expensive alternative instead.

Luxury Penthouse

A high-end apartment located on the top floor of a building, offering luxurious features, expansive views, and premium amenities.