What Are Costs That Make Customers Reluctant to Switch to Another

question 198

Multiple Choice

What are costs that make customers reluctant to switch to another product or service?

• A) Support activities
• B) Switching costs
• C) Loyalty rewards
• D) Value chain activities

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Definitions:

Debt-Equity Ratio

The ratio determining the mix of equity and borrowed funds utilized for financing a company’s assets.

After-Tax Cost

The actual cost of an expense or investment after accounting for the effects of taxes, providing a more accurate measure of the expense's or investment's true financial impact.

Target Capital Structure

The mixture of debt, equity, and other financing sources a firm aims to hold to maximize its stock value.

Equity Firm

A company that invests in businesses, typically by buying majority ownership to control and manage the companies.