Select all that apply

Question

Which two of the following statements about switching costs are true?
Multiple select question.

Most customers are not deterred by switching costs.

Business consumers will switch to new products or services if costs of existing products or services go up.

They can be relatively costly and dissuade business customers from switching.

Customers tend to avoid switching costs.

Answer 1

The two statements about switching costs that are true are:

1. They can be relatively costly and dissuade business customers from switching.
2. Business consumers will switch to new products or services if costs of existing products or services go up.

The other statements ("Most customers are not deterred by switching costs" and "Customers tend to avoid switching costs") are not generally true, as switching costs can often play a significant role in customer retention.