Early entrants to a market that are able to create switching costs that tie customers into their products or services are capitalizing on
A) first-mover advantages.
B) pioneering costs.
C) economies of scale.
D) late-mover advantages.

Question

Quizplus · Accepted Answer

The advantages frequently associated with entering a market early are commonly known as first-mover advantages. One advantage is the ability of early entrants to create switching costs that tie customers into their products or services. Such switching costs make it difficult for later entrants to win business.

Early Entrants to a Market That Are Able to Create