To Minimize the Threat of Substitute Products or Services,some Businesses

question 72

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 you 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:

Reinforcement

In behavioral psychology, a process by which a behavior is strengthened or made more likely to occur again by rewards or consequences.

Groupthink

A mental effect that happens among a group when their need for agreement or uniformity leads to choices that are illogical or ineffective.

Group Polarization

A group's propensity to make choices that are further to the extreme compared to the initial leanings of the individuals in the group.

Jurors' Opinions

The personal judgments or beliefs held by members of a jury, which may influence their decision in a legal trial.