Jupiter Inc.,a software firm,is starting to face competition from the new entrant Coral Inc.Jupiter Inc.wants to prevent its existing customers from switching to Coral's newly developed software.Which of the following measures should Jupiter Inc.adopt?
A) Ensure that customers find its software more convenient and simpler to use, as compared to that of Coral Inc.
B) Keep the initial cost of the software higher than that of Coral Inc.
C) Keep the prices of the complements required for the software higher than that of Coral Inc.
D) Ensure that fewer complementary products are availability for its products, as compared to that of Coral Inc.

Question

Quizplus · Accepted Answer

Jupiter Inc. should focus on making their software better than Coral's in terms of convenience and simplicity. This would make their existing customers less likely to switch to Coral's software. Keeping the initial cost of the software high (B) or the prices of complements required for the software high (C) may initially prevent customers from switching, but it could also drive them away from Jupiter Inc. in the long run. Ensuring fewer complementary products are available (D) could also backfire, as customers may prefer Coral's software specifically because it has more complementary products.