- This topic has 1 reply, 2 voices, and was last updated 6 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
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.
Eg. 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.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.