Businesses should try to build in switching costs, that is, real costs or impediments that mean that buyers prefer to stay with existing suppliers.
Its from the notes on porters 5 forces.
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I can't understand this
6y ago#1Eg. At one time, changing your mobile phone network meant you had to change phone number. Obviously a cost or inconvenience to you, so is a switching cost to you.
Another example is moving banks where,there can be a lot of bother changing standing orders etc so many people stay with same bank.
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