In which situation is a business least vulnerable to defections?
A) dissatisfied customers, low competitive intensity, and high switching costs
B) dissatisfied customers, high competitive intensity, and low switching costs
C) satisfied customers, low competitive intensity, and low switching costs
D) satisfied customers, low competitive intensity, and high switching costs

Question

Quizplus · Accepted Answer

When a business has satisfied customers, low competitive intensity, and high switching costs, it is least vulnerable to defections. Satisfied customers are less likely to defect to competitors, low competitive intensity means there are fewer alternatives available, and high switching costs make it difficult or expensive for customers to switch to a competitor.

In Which Situation Is a Business Least Vulnerable to Defections