Advanced Competitive Strategy | Online Course Support

Which of these examples create switching costs for the respective consumer?

 
 
 

This is correct. Now you have to go to a store and have your files transferred to a new format.

 
 

This is correct. As discussed in the lecture, new customers are costly to acquire and in many cases are not profitable right away. But new customers tend to get more profitable over time.

 
 
 
 
 
 

This is correct. Giving free software specifically designed for this computer increases switching costs. When consumers want to switch their computer brand, they will also need to purchase the software additionally.

 
 

This is true. Any kind of pricing which gives consumers a free unit after buying some units implicitly causes switching costs.

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