Switching costs refer to the expenses and risks that a customer incurs when changing from one supplier or service provider to another. These costs can be financial, time-related, or even psychological, and they play a crucial role in customer retention and competitive strategy. High switching costs often create a barrier for customers, making them less likely to change providers, which can give companies a significant advantage in maintaining their customer base.
congrats on reading the definition of switching costs. now let's actually learn it.