Assume a customer is dissatisfied with a product purchased in a highly competitive market and there are low switching costs. How vulnerable is the company to defection by this customer?
A) no vulnerability
B) low vulnerability
C) moderate vulnerability
D) high vulnerability

Question

Quizplus · Accepted Answer

In a highly competitive market with low switching costs, the company is highly vulnerable to defection by dissatisfied customers. These customers have plenty of alternatives to choose from, and the cost of switching to a competitor is low, making it more likely that they will switch. Therefore, the company needs to take the customer's complaints seriously and address them promptly to avoid losing that customer to the competition.

Assume a Customer Is Dissatisfied with a Product Purchased in a Highly