Sellers try to avoid the entry of new rivals through the use of demand-side strategies. These demand-side strategies do NOT include:
A)raising the market demand for the product.
B)raising the cost that customers face when they switch to a new seller of the product.
C)generating network effects.
D)building a good reputation with customers who are loyal.

Question

Quizplus · Accepted Answer

Demand-side strategies are used to discourage or prevent new rivals from entering a market. Raising market demand for the product, generating network effects, and building a good reputation help to establish barriers to entry for new competitors. However, raising the cost that customers face when switching to a new seller is a supply-side strategy that is designed to discourage customers from leaving a seller once they have established a relationship. Therefore, option A is the correct answer.

Sellers Try to Avoid the Entry of New Rivals Through