Moderate

Which of the following refers to the expenses that a customer incurs in lost time and expenditure of resources when changing from one seller to a competing seller ?

Correct answer: D. switching costs

  • A. termination costs
  • B. moving costs
  • C. development costs
  • D. switching costs

Explanation

Switching costs are the time, money, effort, and other resources a customer loses when moving from one seller or supplier to another. Termination costs are only one possible component, not the general term.

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