In order to use lock-in as a competitive strategy, firm managers should be prepared to do all of the following except:
A) invest in a given base of customers by giving concessions initially.
B) avoid selling complementary products and access to the customer base.
C) be the first to bring a new type of product to market.
D) use loyalty programs as part of an entrenchment strategy.
B
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If people can benefit from a good even if they do not pay for it, the good is nonrival
Indicate whether the statement is true or false
Assume the price of product A increases from $1 to $1.50, while the price of competing product B increases from $1.50 to $2.00
Based on the information, what we can say about the absolute and relative price differences between the two products and the relative attractiveness of the two products to consumers.
Which of the following statements is not true with regard to repurchase agreements?
A) In a typical repo, an entity sells government securities and agrees to repurchase them at a higher price the next day. B) A reverse RP involves borrowing funds overnight. C) The repo market has evolved into maturities ranging from one day to three months. D) In practice, a repo is used to raise funds for anything the borrower chooses.
In economic theory, we assume that the goal of the firm is to:
a. maximize sales revenue. b. maximize market share. c. maximize the benefits it provides to its customers. d. maximize the profit. e. maximize the sales volume.