What is Switching Cost

1.

Monetary and non-monetary factors that compel a customer to shift his website preference. Learn more in: Examining the Value, Satisfaction, and Loyalty Relationship Under Online Framework Using PLS-ANN

2.

The broad term used for the cost of inconvenience imposed on a customer due to switching from a product, service, brand, or a firm to another. Since switching costs are more psychological and less financial, it is difficult to quantify them. There is a strong relationship between switching costs and customer loyalty. If the level of the switching cost of a customer for a specific brand is higher than a threshold, then the customer does not have an incentive to switch to another brand, and hence remains loyal. Learn more in: Electronic Loyalty Programs Comparative Survey

3.

The fixed cost obtained by a buyer when changing suppliers, because the buyer's product specifications, production equipment, and purchasing cycle is closely tied to the current supplier's products and operations. Learn more in: The Importance of Customer Satisfaction and Customer Loyalty in the Service Sector