New entrants to a market must ensure that the value they offer exceeds the incumbents' value in addition to any perceived _____.
A) customer switching costs
B) market depreciation
C) network effects
D) advertising expenses
E) scale advantages

Question

Quizplus · Accepted Answer

Customer switching costs refer to the expenses incurred by customers when they switch from one product or service to another. For a new entrant to succeed in the market, they must offer a value proposition that exceeds the customer switching costs associated with leaving the incumbent product or service. Market depreciation, network effects, advertising expenses, and scale advantages are important factors to consider but are not directly related to customer switching costs in the same way.

New Entrants to a Market Must Ensure That the Value