High switching cost refers to
A)a strategy used by telecom providers to retain customers.
B)a strategy employed by companies to lock in customers by making it difficult or expensive to switch to another product.
C)an illegal tactic that prevents customers from leaving by charging a prohibitive service termination fee.
D)a strategy employed by companies to prevent customers from renegotiating service contracts.
E)a service charge that discourages customers from switching service providers.

Question

Quizplus · Accepted Answer

High switching cost is a strategy used by companies to lock in customers by making it difficult or expensive to switch to another product. This could include the cost of purchasing new equipment, learning a new system, or paying termination fees. By making it costly or challenging to switch, companies hope to retain their customers for longer periods of time.

High Switching Cost Refers to