Zenon Corporation operates in a network industry and charges existing customers $9.99 per month for its services, but it offers new customers who sign a three-year contract six months of service for $1 per month. This new customer offer is known as
A) a teaser strategy.
B) product differentiation.
C) a lock-out strategy.
D) market segmentation.

Question

Quizplus · Accepted Answer

A teaser strategy is used to attract new customers by offering a significantly lower price or better terms for a short initial period. In this case, Zenon Corporation's offer of six months of service for $1 per month to new customers who sign a three-year contract is a classic example of a teaser strategy, designed to entice new customers with an attractive initial offer.

Zenon Corporation Operates in a Network Industry and Charges Existing