Companies that are locked out of a market are those in which consumers are unwilling to bear the switching costs required for them to abandon the established standard and adopt the new one.

Question

Quizplus · Accepted Answer

This statement is true. Switching costs can include financial, time, and effort costs, and a high enough level of switching costs can result in customers being unwilling to switch to a new product or service, thereby locking out companies trying to enter that market.

Companies That Are Locked Out of a Market Are Those