Switching costs, in the context of technology industries, refer to the costs that:
A) industries incur in order to adhere to technical standards.
B) companies incur to switch from one business model to another.
C) customers need to bear to abandon an established standard and adopt a new standard.
D) industries need to bear to abandon old technology and get license for a new technology.
E) companies need to bear to create product differentiation when they are locked inside an industry.

Question

Quizplus · Accepted Answer

Switching costs refer to the costs that customers need to bear in order to abandon an established standard and adopt a new standard. This can include the costs associated with learning a new system, retraining employees, and any other costs associated with transitioning to a new technology or standard.

Switching Costs, in the Context of Technology Industries, Refer to the Costs