Switching costs refer to the:
A) Cost to a producer to exchange equipment in a facility when new technologies emerge
B) Cost of changing the firm's strategic group
C) One-time costs suppliers incur when selling to a different customer
D) One-time costs customers incur when buying from a different supplier

Question

Quizplus · Accepted Answer

Switching costs refer to the one-time costs a customer incurs when buying from a different supplier. This can include costs such as retraining employees, modifying systems or processes, or dealing with the potential for lower quality from a new supplier.

Switching Costs Refer to The