Question

PowerCruise, a holiday cruise firm, recently offered its existing customers, who had registered for a two-year membership, an extension of six months to their membership without any additional charges. By doing this, which competitive strategy did PowerCruise implement?A) creation of a new service
B) product differentiation
C) locking in customers
D) locking in suppliers

Answer 1

Answer:

Locking in customer

Explanation:

Power Cruise , a holiday cruise firm, recently offered its existence customers, who had registered for a two-year membership , an extension of six-months to their membership without any additional charges. By doing this, Power Cruise implement the locking in customer strategy.

Locking in customer strategy is basically used by the to hold on the customer with them. This strategy is used by the company , so that they do not loss their existing customer and also get more customers.

They improve their image among their  customer by offering such facilities. They use such strategy because they don't want their customer to go to their competitor. Company give people reason to stay with them . They know that in today's market the customer is the king so they give them priority. They try to provide them best good and services.