Switching costs or switching barriers are terms used in microeconomics, strategic management, and marketing. They may be defined as the disadvantages or expenses consumers feel they experience, along with the economic and psychological costs of switching from one alternative to another. For example, when telephone service providers also offer Internet access as a package deal they are adding value to their service. A barrier to switching is then formed as swapping internet services providers is a time consuming effort. There are a range of different switching costs that fall under three main categories: procedural switching barriers, financial switching barriers, and relational switching barriers. Procedural switching barriers refer to the time and resources associated with changing to a new provider; financial switching barriers refer to the loss of financially measurable resources; and relational switching barriers look at the emotional inconvenience from the breaking of bonds and loss of identity.
Procedural switching barriers emerge from the buyer’s decision-making process and the execution of their decision. Procedural switching barriers consist of: economic risk, learning, and setup costs, evaluation, this type of switching cost primarily involves the expenditure of time and effort. There are a number of switching costs or facets that fall under procedural switching barriers. Uncertainty costs refer to the perceived likelihood of acquiring a lesser performance and quality when switching. They have the potential to prevent a customer from switching. Pre-switching search and evaluation costs refer to the time and effort costs associated with the search and evaluations required to make a switching decision. Post-switching behavioural and cognitive costs envision the time and effort needed to become familiar with a new service routine when switching occurs. Setup costs refer to the time and effort costs related to the process of establishing a new product for initial use or forming a relationship with a new provider.
This page is automatically generated and may contain information that is not correct, complete, up-to-date, or relevant to your search query. The same applies to every other page on this website. Please make sure to verify the information with EPFL's official sources.
In theories of competition in economics, a barrier to entry, or an economic barrier to entry, is a fixed cost that must be incurred by a new entrant, regardless of production or sales activities, into a market that incumbents do not have or have not had to incur. Because barriers to entry protect incumbent firms and restrict competition in a market, they can contribute to distortionary prices and are therefore most important when discussing antitrust policy.
Ce cours de deux semestres donne une introduction à la Physique du solide, à la structure cristalline, aux vibrations du réseau, aux propriétés électroniques, de transport thermique et électrique ains
Cybersickness continues to be one of the main barriers for mainstream adoption of Virtual Reality (VR). Despite the wealth of research available on this topic, it is still an unsolved problem. This paper explores the potential influence of cybersickness ov ...
IEEE2020
Small-scale farmers are highly threatened by climate change. Experts often base their interventions to support farmers to adapt to climate change on their own perception of farmers' livelihood risks. However, if differences in risk perception between farme ...
SPRINGER2018
, , ,
Sediment detention basins are implemented on mountain rivers to trap solid material that may aggravate the flooding of downstream settlements. However, retention structures built in the past may unnecessarily retain sediment during non-hazardous flood even ...