The extra cost that a customer will have to spend in order to switch from one product to another product is called ___________.
A) External cost
B) Direct cost
C) Substitute cost
D) Switching cost

Question

Quizplus · Accepted Answer

Switching cost refers to the extra expenses a customer will have to bear when switching from one product to another, such as the cost of learning how to use the new product, transferring data to the new product, or the actual financial cost of purchasing the new product. External cost refers to expenses or consequences that affect parties other than the buyer or seller. Direct cost refers to the direct expenses incurred in the production of a product or service. Substitute cost refers to the cost of a similar product or service that can be used as a substitute for the original product or service.

The Extra Cost That a Customer Will Have to Spend