Switching costs, in the context of technology industries, refer to the costs that:
A) industries have to incur in order to adhere to technical standards.
B) companies have to incur to switch from one business model to another.
C) customers need to bear to abandon an established standard and adopt a new standard.
D) industries need to bear in order to abandon old technology and get license for a new technology.
E) companies need to bear to create product differentiation when they are locked inside an industry.

Question

Quizplus · Accepted Answer

Switching costs in technology industries refer to the costs that customers need to bear to abandon an established standard or product and adopt a new standard or product. This can include costs such as financial expenses, time and effort, and learning and training costs. The other options are not as relevant to the definition of switching costs in technology industries.

Switching Costs, in the Context of Technology Industries, Refer to the Costs