Building customer awareness of the newcomer's product is very costly in which of the following sources of barriers to entry?
A) Economies of scale
B) Technological barriers
C) Administrative barriers
D) Government regulations
E) Brand loyalty

Question

Quizplus · Accepted Answer

If established organizations enjoy significant brand loyalty,then a new entrant will find it extremely difficult and costly to obtain a share of the market.Newcomers must bear huge advertising costs to build customer awareness of the goods or services they intend to provide.

Building Customer Awareness of the Newcomer's Product Is Very Costly