High switching costs help companies:
a) Attract new customers.
b) Raise prices without the risk of losing customers.
c) Develop new products.
d) Control costs
Switching Costs refer to the cost burdened by consumers as a result of patronizing one brand from another. Companies who manufacture unique products may have higher possibility of earning revenues as its customers will be having a hard time on switching to its competitors.
Answer and Explanation:
Answer: b) Raise prices without the risk of losing customers.
Higher Switching Costs means higher cost to be incurred by a customer when deciding to...
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from Intro to Business: Help and ReviewChapter 1 / Lesson 8