________ are the costs that customers incur when they change suppliers.
A) Network costs
B) Switching costs
C) Capital expenditures
D) Opportunity costs

Question

Quizplus · Accepted Answer

Switching costs are the costs incurred by customers when they switch from one supplier to another. These can include both financial costs (such as fees for cancelling contracts or purchasing new equipment) and non-financial costs (such as the time and effort required to research new suppliers, negotiate new contracts, and set up new systems or processes). Switching costs can act as a barrier to entry for new competitors, as they make it more difficult for customers to switch to a new provider.

________ Are the Costs That Customers Incur When They Change