The costs that must be borne by customers if they are to stop purchasing from the current supplier and begin purchasing from another is(are):
A)customer switching costs.
B)lead time.
C)resource costs.
D)resource bundle errors.

Question

Quizplus · Accepted Answer

Customer switching costs refer to the costs that the customer incurs when switching from one supplier to another. These costs can include things like the cost of training employees on a new system, the cost of switching over to a new product, and the cost of reconfiguring internal processes. Therefore, A is the correct choice as it is the only option that accurately describes the costs that customers must bear when switching suppliers. B, C, and D do not accurately describe these costs.

The Costs That Must Be Borne by Customers If They