Advanced Competitive Strategy | Online Course Support

Which of these statements are true?

 
 

This is true. As seen in the formula discussed in the lecture, the switching decision of a customer depends on whether the goodie and the utility increase from the new product or service are higher than the switching costs.

 

This is true. Making a customer switch is only profitable for a company if the profit increase from this customer is bigger than the sum of the switching costs including the switching goodie.

 
 

This describes the formula derived in the lecture.

 
 

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