To Minimize the Threat of Substitute Products or Services, Some

Multiple Choice

To minimize the threat of substitute products or services, some businesses will create switching costs. What is a switching cost?

A) The price of the product or service is so high that a customer cannot afford to purchase another
B) Once you leave the first business for a competitor, you lose your ability to switch back to the first business
C) A non-refundable fine levied against the customer for switching to a competitor
D) Costs that make customers reluctant to switch to another project or service supplier