If a company implements a policy that states if a customer leaves their firm, they will have to pay a $1,500 penalty, the company is implementing which of Porter's competitive advantages?
A) improving customer service
B) establishing alliances
C) lock in customers
D) lock in buyers

Question

Quizplus · Accepted Answer

The policy of imposing a penalty on customers who leave the company is an example of "lock in customers," one of Porter's competitive advantages. This means that once a customer has decided to do business with the company, they are less likely to switch to a competitor because of the penalty fee. It creates a barrier to exit, which can help the company retain its customer base.

If a Company Implements a Policy That States If a Customer