Which barrier to entry do corporations such as P&G use to force new entrants to spend heavily to overcome existing customer loyalty?
A) rivalry among existing firms
B) switching costs
C) capital requirements
D) product differentiation
E) access to distribution channels

Question

Quizplus · Accepted Answer

P&G uses product differentiation to create strong brand loyalty among customers, which makes it difficult for new entrants to enter the market and compete effectively. New entrants would have to spend heavily on marketing and advertising to overcome the existing customer loyalty to P&G's products.

Which Barrier to Entry Do Corporations Such as P&G Use