Question

Using an information system to make customers and/or suppliers reluctant to change to another competitor is called

a) Customer lock-in
b) Supplier lock-out
c) Market segmentation
d) Strategic alliance

Answer 1

Using an information system to deter customers or suppliers from changing to a competitor is known as Customer lock-in. It involves creating barriers to entry that make it difficult or costly to switch, ensuring customers remain with the current company.

Step-by-step explanation:

Using an information system to make customers and/or suppliers reluctant to change to another competitor is called Customer lock-in. Customer lock-in is a strategy where a company utilizes technology, customer service, and other methods to create a situation where customers depend on their service and find it difficult or costly to switch to a competitor. Barriers to entry such as legal, technological, or market forces may discourage or prevent potential competitors from entering a market, thus solidifying the existing firm's customer lock-in.