When competitive intensity is low and switching costs are high, dissatisfied consumers are almost certain to switch.

Question

Quizplus · Accepted Answer

When competitive intensity is low and switching costs are high, dissatisfied consumers may hesitate to switch as there are limited alternatives and it may be costly to switch. This is because there are barriers to exit which include high switching costs, limited alternative options and other incentives to stay with the current products or services. Therefore, dissatisfied consumers are not almost certain to switch in such a situation.

When Competitive Intensity Is Low and Switching Costs Are High