A large software manufacturer attempts to lock in customers by making it difficult for customers to change to another product. The strategy used by the company is referred to as ________.
A) switching costs strategy
B) low cost operation strategy
C) standardization strategy
D) consumerist strategy

Question

Quizplus · Accepted Answer

The strategy used by the company to make it difficult for customers to change to another product is referred to as switching costs strategy. Switching costs refer to the costs that customers incur in terms of money, time, and effort when switching from one product or service to another. By making it difficult for customers to switch, the company attempts to lock in customers and reduce the likelihood of them leaving for a competitor.

A Large Software Manufacturer Attempts to Lock in Customers by Making