When Competitive Intensity Is High and Switching Costs Are Low,a

question 17

True/False

When competitive intensity is high and switching costs are low,a company is vulnerable to consumers who will switch providers even when customers are satisfied.

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Definitions:

External Benefit

An uncompensated benefit that an individual or firm confers on others; also known as positive externality.

Higher Costs

Expenses that exceed the usual or expected amount, which can negatively impact profitability and pricing strategies.

Plastics Manufacturing

The industrial process of producing polymers and polymer-based items, used in various applications from packaging to automotive parts.

Negative Externality

An economic activity that imposes a negative effect on an unrelated third party, often leading to market failure if not addressed, like pollution.