To minimize the threat of substitute products or services,some businesses will create switching costs.What is a switching cost?
A)The price of the product or service is so high that a customer cannot afford to purchase another
B)Once you leave the first business for a competitor,you lose you ability to switch back to the first business
C)A non-refundable fine levied against the customer for switching to a competitor
D)Costs that make customers reluctant to switch to another project or service supplier

Question

Quizplus · Accepted Answer

Switching costs refer to expenses or investments that customers need to make to switch from one product or service provider to another. These costs may include time, effort, risk, or money. By increasing switching costs, businesses can reduce the likelihood of customers switching to competing products or services. This can be achieved through loyalty programs, contracts, penalties, or other means that make it more difficult or costly for customers to switch to competitors.

To Minimize the Threat of Substitute Products or Services,some Businesses