Customers would be less loyal and more price sensitive in which of the following situations?
A)The switching costs are low.
B)There is only one seller in the market.
C)The market's companies sell differentiated products.
D)Customers are aware of the prices of all sellers.

Question

Quizplus · Accepted Answer

Switching costs are the costs incurred by a customer when switching from one product or service to another. When switching costs are low, customers are more likely to switch to a competitor if they find a better price.

Customers Would Be Less Loyal and More Price Sensitive in Which