Ying Yang wished to upgrade her current home communications system. She wanted to replace her current Internet, TV, and phone to a fiber optics system. As a buyer, which force discussed by Porter did Ying need to deal with most?
A) Threat of new entrants
B) Switching costs
C) Entry barrier
D) First-mover

Question

Quizplus · Accepted Answer

Switching costs are the costs that a consumer incurs when switching from one product or service to another. In this case, Ying Yang wants to upgrade her current home communications system to a fiber optics system, which involves switching from her current Internet, TV, and phone services. Switching costs can include installation, termination fees, and the cost of new equipment, which can be a significant barrier for customers to switch to a new service. Therefore, Ying Yang needs to deal with switching costs most.

Ying Yang Wished to Upgrade Her Current Home Communications System