Which of the following is not an example of a way a seller can increase switching costs?
A)Creating a product line compatible with parts that are made by other manufacturers
B)Offering coupons that tie discounts to the completion of a series of transactions
C)Offering warranties if product is not serviced at authorized dealer
D)Bundling complementary products that fit together in a product line
E)Offering "frequent customer" points that tie promotions to the completion of a series of transactions

Question

Quizplus · Accepted Answer

Creating a product line compatible with parts that are made by other manufacturers actually reduces switching costs, as customers can easily switch to another product that also uses those same parts. The other choices all involve incentives or requirements for customers to continue using the seller's products or services, thus increasing switching costs.

Which of the Following Is Not an Example of a Way