The expenses incurred by a customer or company in lost time and resources when changing from one supplier or system to a competing supplier or system are known as:
A)retention costs.
B)preservation costs.
C)differentiation costs.
D)switching costs.
E)variation costs.

Question

Quizplus · Accepted Answer

Switching costs refer to the expenses incurred when changing from one supplier or system to another, including lost time and resources. Retention costs refer to the expenses incurred to retain customers or employees. Preservation costs refer to costs to maintain existing systems or products. Differentiation costs refer to costs associated with making a product or service unique from competitors. Variation costs refer to costs associated with differences in product or service offerings.

The Expenses Incurred by a Customer or Company in Lost