Which of the following strategies would NOT reduce the threat posed by substitutes?
A)Lobby for government policies that reduce the attractiveness of substitutes.
B)Raise barriers to entry into the relevant market or markets.
C)Raise switching costs to retain current customers.
D)Raise price to show that product demand is strong.

Question

Quizplus · Accepted Answer

Raising price to show that product demand is strong may actually encourage customers to switch to substitutes as they seek more affordable or cost-effective options. This strategy, therefore, does not reduce the threat posed by substitutes.

Which of the Following Strategies Would NOT Reduce the Threat