Firms must prevent resale between segments using a variety of:
A) fences
B) bridges
C) tunnels
D) none of the above

Question

Firms must prevent resale between segments using a variety of: ​
A) ​fences
B) ​bridges
C) ​tunnels
D) ​none of the above

Quizplus · Accepted Answer

Fences are the most suitable option to prevent resale between segments as they create barriers that make it difficult for customers to switch segments. For instance, a firm can use different pricing strategies, bundles, or loyalty programs for different segments, thus discouraging customers from switching. Similarly, a firm can create differences in product features, quality, or distribution channels to lock customers into their desired segments. These fences should be strong enough to protect a firm's competitive advantages, but flexible enough to allow for cross-selling and upselling opportunities. Bridges and tunnels are not appropriate solutions as they would facilitate rather than prevent resale between segments.

Firms Must Prevent Resale Between Segments Using a Variety Of