Alpha Systems, a Market Leader in High-End Video Games, Has

question 72

Multiple Choice

Alpha Systems, a market leader in high-end video games, has designed its products such that it is difficult for the consumers to migrate to a rival. Which of the following is true about this scenario?

• A) Alpha Systems will have low switching costs.
• B) Alpha Systems has focused on creating customers who are "butterflies."
• C) Alpha Systems has created customers who are "barnacles."
• D) Alpha Systems is likely to reduce its staying power in this market.
• E) Alpha Systems has focused on reducing "friction" for its end users.

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Definitions:

Personal Property

Movable assets owned by an individual or entity, as opposed to real property like land or buildings.

Real Property

Legal term describing land and anything permanently attached to it, such as buildings.

Mortgagee

The lender in a mortgage loan agreement, typically a bank or financial institution.

Deficiency Judgment

A court order that holds a borrower personally liable for the shortfall when the sale of a foreclosed property does not cover the outstanding loan balance.