Business customers are sometimes less price sensitive if there are switching costs.

Question

Quizplus · Accepted Answer

Switching costs refer to the expenses and effort involved in changing from one supplier or vendor to another. In a business-to-business context, these costs can include things such as retraining employees, reconfiguring processes, and potential disruptions to operations. If switching costs are high, business customers may be less likely to switch to a competitor, even if pricing is not the lowest available. This makes them less price sensitive.

Business Customers Are Sometimes Less Price Sensitive If There Are