Question

Customer retention may be strengthened by:

A. erecting high switching barriers
B. calculating the lifetime value of the customer
C. reducing the value/price ratio on products
D. eliminating affinity groups
E. enhancing the supply chain

Answer 1

Monopolistically competitive firms can increase demand for their products through product differentiation, customer relationship management, and targeted marketing.

Step-by-step explanation:

A monopolistically competitive firm can increase demand for its products by:

1. Differentiating its products through branding, packaging, or unique features, creating a perceived value that sets them apart from competitors.
2. Engaging in effective customer relationship management, such as providing excellent customer service, loyalty programs, and personalized offers.
3. Using targeted marketing and advertising strategies to reach their target audience and create awareness and desire for their products.