If established organizations enjoy significant brand loyalty, a new entrant will
A)find it neither difficult nor costly to obtain a share of the market.
B)easily establish itself as another company enjoying brand loyalty.
C)bear huge costs to build customer awareness of its products.
D)deter potential competitors from entering the task environment.

Question

Quizplus · Accepted Answer

A new entrant will bear huge costs to build customer awareness of its products because established organizations with significant brand loyalty have already captured consumer trust and recognition, making it challenging for new entrants to gain market share without substantial investment.

If Established Organizations Enjoy Significant Brand Loyalty, a New Entrant