In many instances,customers develop loyalty to an organization in part because of costs involved in changing to and purchasing from a different firm.These costs are called:
A) Financial inertia
B) Opportunity costs
C) Switching costs
D) Fixed costs
E) Retained costs

Question

Quizplus · Accepted Answer

Switching costs refer to the expenses and effort a customer incurs when switching from one company's products or services to another's. These costs can include financial costs (such as termination fees, contract penalties), emotional costs (such as the hassle of learning a new system or finding new suppliers) and time costs (such as the time spent researching alternatives). As a result, switching costs can create a significant barrier to customer churn and lock customers into a long-lasting relationship with a brand.

In Many Instances,customers Develop Loyalty to an Organization in Part