If a new entrant hopes to attract customers from an established incumbent, the new entrant must ensure that the value they offer exceeds the incumbents' value in addition to any perceived _____.
A) switching costs
B) market depreciation
C) brand benefits
D) advertising expenses
E) scale advantages

Question

Quizplus · Accepted Answer

Switching costs are the costs that a customer incurs as a result of changing from one supplier to another. These can include financial costs, time, effort, and the risk of moving to a new product or service. For a new entrant to attract customers from an established incumbent, they must offer value that not only exceeds the incumbent's value but also covers any perceived switching costs the customer might face.

If a New Entrant Hopes to Attract Customers from an Established