Which of the following statements is true with regards to switching costs?
A) Switching costs are the financial costs of switching to a new product or service
B) Switching costs are the financial and non-financial costs of switching to a new product or service
C) Switching costs are start-up costs incurred when replacing old technology
D) Switching costs are the financial costs incurred by the supplier to ensure that their current systems are operationally sound

Question

Quizplus · Accepted Answer

Switching costs refer to the combination of financial and non-financial costs that a customer incurs when switching from one product or service to another. These costs can include things like the cost of purchasing new equipment or software, the time and effort required to learn how to use the new product, and the potential loss of productivity during the transition period. While financial costs are certainly a significant part of switching costs, there are many other factors that can make switching difficult or time-consuming for customers.

Which of the Following Statements Is True with Regards to Switching