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High switching costs help companies: a) Attract new customers. b) Raise prices without the risk...

Question:

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

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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