Factors that make it difficult or expensive to change suppliers or buyers are referred to as _____.

Question

Quizplus · Accepted Answer

Switching costs are the expenses or difficulties incurred when changing suppliers or buyers. These may include the costs of finding or evaluating new suppliers or buyers, costs of modifying production or distribution systems, emotional costs such as loss of familiar relationships, or financial penalties for ending existing contracts or agreements. Therefore, D is the correct answer. Options A, B, and C are not relevant to this concept.

Factors That Make It Difficult or Expensive to Change Suppliers