Can you please explain the concept of switching costs with an example?
Does it mean that as a business,you don’t give an opportunity to the buyers to switch to other suppliers? Hence buyers depending on your source of supply. As a result it would be low switching costs but high bargaining power of buyers.
Is it that way? If not, kindly explain about it please.
You give the opportunity but make it ‘bothersome’.
For for example, in the UK, when mobile phones were becoming popular if you wanted to change your network provider you had to change your telephone number: a dreadful inconvenience/switching cost.
Not any more: we can keep our numbers and switching networks is much more common.
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