A firm is most likely to be vulnerable to satisfied customers' switching behavior when the switching costs are:
A) low and the firm operates in a business environment with high competitive intensity.
B) high and the consumer dissatisfaction is low.
C) high and the firm operates in a business environment with low competitive intensity.
D) low and the consumer satisfaction is high.

Question

Quizplus · Accepted Answer

When switching costs are low, it is easier for satisfied customers to switch to a competitor. Additionally, in a business environment with high competitive intensity, there are likely many options for customers to choose from, increasing the likelihood of switching. This combination makes the firm vulnerable to losing satisfied customers.

A Firm Is Most Likely to Be Vulnerable to Satisfied