_____ arise when a customer invests time, energy, and money shifting from the products offered by one established company to the products offered by a new entrant.
A) Overhead costs
B) Incremental costs
C) Marginal costs
D) Opportunity costs
E) Switching costs

Question

Quizplus · Accepted Answer

Switching costs are the costs incurred by a customer when transitioning from one product to another. This includes time, effort, and expenses associated with learning new features and functionalities, purchasing new equipment or software, and terminating contracts with previous providers. These costs create a barrier to entry for new competitors and are often used as a strategy to retain customers by established companies.

_____ Arise When a Customer Invests Time, Energy, and Money