A Firm Is Likely to Be Most Vulnerable to Customers

question 12

Multiple Choice

A firm is likely to be most vulnerable to customers' switching behavior when:

• A) its customers are dissatisfied, the switching costs are low, and the firm operates in a business environment with high competitive intensity.
• B) its customers are satisfied, the switching costs are high, and the firm operates in a business environment with high competitive intensity.
• C) its customers are dissatisfied, the switching costs are high, and the firm operates in a business environment with low competitive intensity.
• D) its customers are satisfied, the switching costs are low, and the firm operates in a business environment with low competitive intensity.
• E) its customers are satisfied, the switching costs are high, and the firm operates in a business environment with low competitive intensity.

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Definitions:

Portfolio Planning

A strategic process that involves making investment decisions to balance risk against performance, often in the context of project or product portfolios.

Corporate-Level Strategy

The top-level strategic planning and decision-making that guides the overall direction, scope, and ambitions of a corporation.

Competing Business Opportunities

Different prospects or avenues through which a business can grow or expand in the market, often requiring prioritization and strategic choice.

Product Life Cycles

The stages through which a product passes from its development to eventual withdrawal from the market, including introduction, growth, maturity, and decline.