Switching Costs Refer to the

question 128

Multiple Choice

Switching costs refer to the

• A) cost to a producer to exchange equipment in a facility when new technologies emerge.
• B) cost of changing the firm's strategic group.
• C) one-time costs suppliers incur when selling to a different customer.
• D) one-time costs customers incur when buying from a different supplier.

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Definitions:

Familiar Brand Name

A brand name that is well known among consumers, often because of extensive marketing or long-term presence in the market.

Mere Exposure Effect

A psychological phenomenon whereby people tend to develop a preference for things merely because they are familiar with them.

Self-Fulfilling Prophecy

A belief or expectation that influences behavior in a way that causes the belief to become true.

Social Trap

A situation in which the conflicting parties, by each pursuing their self-interest rather than the good of the group, become caught in mutually destructive behavior.