|Overview: Switching Barriers|
|Definition||An obstacle customers face when switching from one product or service to another.|
What are Switching Barriers?
John Spacey, November 18, 2015
Switching barriers are obstacles that customers have to switching from one product or service to another. They include costs, contractual obligations, risks, interruptions of service and inconveniences. From the seller's perspective, switching barriers may prevent customers from leaving and allow higher prices to be imposed. In some cases, firms establish as many restrictions as legally permitted to make it difficult for customers to leave a service. From a customer's perspective, switching barriers are an exposure that put the customer at risk of higher prices, unfair terms, reductions in benefits and degradation of service.In many cases, governments regulate industries that are known for imposing artificial switching barriers such as punitive fees or cumbersome processes for closing accounts.
EconomicsThis is the complete list of articles we have written about economics.
If you enjoyed this page, please consider bookmarking Simplicable.
Economic TheoriesA list of economic theories that are particularly useful for business.
The tendency for people at high risk to buy insurance.
A list of economic positions or capabilities that allow you to outperform in a particular industry.
Knowledge WorkA definition of knowledge work with examples.
ProductionA definition of production with examples.
An overview of post-scarcity.
Economic InfrastructureThe common types of economic infrastructure.
The common types of business competition.
InefficiencyThe common types of inefficiency.
An overview of supply with common examples.
Alpha vs Beta
The difference between two common investment measurements.
Regression Toward The Mean
An overview of Regression Toward The Mean.
Efficient Market HypothesisAn overview of the Efficient Market Hypothesis.
An overview of animal spirits, a theory of investing.
Financial MarketsA definition of financial market with examples.
A definition of Mr. Market, an investing theory.
A definition of organic growth with examples.
The common types of concept company.
Information CostsA definition of information costs with examples.
The definition of channel check with examples.
TrendingThe most popular articles on Simplicable in the past day.
New ArticlesRecent posts or updates on Simplicable. Site Map
Quality Of Life
© 2010-2023 Simplicable. All Rights Reserved. Reproduction of materials found on this site, in any form, without explicit permission is prohibited.
View credits & copyrights or citation information for this page.