To Minimize the Threat of Substitute Products or Services, Some

question 120

Multiple Choice

To minimize the threat of substitute products or services, some businesses will create switching costs. What is a switching cost?

• A) The price of the product or service is so high that a customer cannot afford to purchase another
• B) Once you leave the first business for a competitor, you lose your ability to switch back to the first business
• C) A non-refundable fine levied against the customer for switching to a competitor
• D) Costs that make customers reluctant to switch to another project or service supplier

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Definitions:

Consumer Protection

Laws and regulations designed to ensure the rights of consumers as well as fair trade, competition, and accurate information in the marketplace.

Third-party Beneficiaries

Individuals or entities that are not part of a contract but stand to benefit from its execution.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to standardize and simplify the laws across states.

Recognize

To acknowledge or formally accept something as valid, true, or significant.