Give an Example of a Company Whose Switching Costs Are

question 60

Short Answer

Give an example of a company whose switching costs are too high, effectively keeping its customer captive. How is this company using technology to maintain high switching costs?

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, triggers a conditioned response.

Clicking

The act of pressing and releasing a mouse button or similar device to select or interact with digital elements on a screen.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly paired with an unconditioned stimulus.

Salivation

The production and release of saliva in the mouth, often in response to the sight, smell, or taste of food.