Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on:

Question

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Early entrants that create switching costs are benefiting from the first-mover advantages, which include brand recognition, economies of scale, and the ability to establish customer loyalty. These advantages make it difficult for competitors to enter and gain market share, as customers are tied to the first mover's product. Pioneering costs refer to the expenses incurred in researching and developing a new product or service, and late-mover advantages are advantages that often accrue to firms that enter a market after the market has been established.

Early Entrants to a Market That Are Able to Create