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      Question

      Which action most directly increases customer switching

      cost?
      A Reducing service quality Correct Answer Incorrect Answer
      B Bundling multiple services Correct Answer Incorrect Answer
      C Lowering interest rates Correct Answer Incorrect Answer
      D Expanding branches Correct Answer Incorrect Answer
      E Increasing advertisements Correct Answer Incorrect Answer

      Solution

      Bundling increases dependency on one provider, raising switching barriers. Why others are incorrect: Lower service reduces loyalty; Rate cuts attract but don’t lock-in; Branch expansion improves access; Ads increase awareness only. Banking Example: Savings account + loan + insurance under single relationship.

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