If a seller can create switching costs for its product, then:
A)it is difficult or costly for the seller to switch to producing a different product.
B)it is difficult or costly for customers to switch to another seller of the product.
C)customers will find it more costly to stay with the company than to switch to another seller.
D)it increases its costs by producing several versions of the product so customers can switch between versions.

Question

Quizplus · Accepted Answer

Switching costs refer to the costs that customers incur when they switch from one seller's product to another seller's product. If a seller can create switching costs, it means that customers will find it difficult or costly to switch to another seller of the product. This can lead to customer loyalty and a competitive advantage for the seller.

If a Seller Can Create Switching Costs for Its Product