To minimize the threat of substitute products or services,some businesses will create switching costs.What are switching costs?
A)The start-up costs incurred when replacing old technology with new
B)The costs incurred due to the inability to switch back to your first brand after moving to an alternative brand
C)A non-refundable fine levied against the customer for switching to a competitor
D)The costs that make customers reluctant to another project or service supplier

Question

Quizplus · Accepted Answer

Switching costs are costs that make customers reluctant to switch to another product or service supplier.What you need to realize is that a switching cost does not necessarily have to be an actual monetary cost.

To Minimize the Threat of Substitute Products or Services,some Businesses