Identify a True Statement About Switching Costs

Multiple Choice

Identify a true statement about switching costs.

A) The lower the switching costs, the easier it is for competitors to poach customers.
B) The higher the switching costs, the easier it is to convince customers to switch brands.
C) It is the loss in profit incurred by a firm for every buyer who switches to another brand.
D) It is the cost a firm has to pay to each buyer who switches to another brand for superior quality.