A company puts an early termination fee in its contracts. This is an example of:

Name: A company puts an early termination fee in its contracts. This is an example of:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An early termination fee serves as a switching cost, meaning it is a fee or penalty that customers must pay if they wish to switch to a different brand or product. This is meant to deter customers from switching and ensure some level of customer loyalty. It has nothing to do with brand efficiency, effectiveness, or equity.

A Company Puts an Early Termination Fee in Its Contracts