CUSTOMERS SWITCHING COST: A PRICE CHANGE RESPONSE THAT IS EFFECTIVE

Introduction

Organizations or customers incur switching costs when they switch to a new supplier,
brand, or product. Customers may be discouraged from switching providers and encouraged to
stick with a brand by higher switching prices. According to Indeed editorial team (2023)

Switching costs can be "high" or "low." The higher the cost of switching, the less likely it
is that an individual will be willing to transfer brands, products, services, or suppliers. For
consumers, the higher the cost, the less value they derive from switching to another brand,
product, service, or supplier. According to the Corporate Finance Institute (2022),

The purpose of this research paper is to explore the customer switching cost of a price
change that is effective. Specifically, the paper will determine how the switching cost of price
change can be effective with customers and respond to the market. The paper will also explore
the effectiveness and challenges of switching costs in price changes for customers.

The paper will begin by providing an overview of the customers switching costs for an
effective price change. It will then go into greater detail about certain topics like price changes,
switching costs, and the effectiveness of them for customers.

Finally, the paper will conclude with suggestions, strategies, and further recommendations
for how the price change can be effective for customers. The researchers will provide relevant
literature, case studies, and expert opinions to provide a comprehensive understanding of the
customers switching costs in an effective price change.
REFERENCES:

https://www.indeed.com/career-advice/career-development/switching-costs#:~:text=Switching
%20costs%20are%20expenses%20organizations,remain%20loyal%20to%20a%20brand.

https://corporatefinanceinstitute.com/resources/management/switching-costs/#:~:text=Switching
%20costs%20can%20be%20%E2%80%9Chigh,product%2C%20service%2C%20or%20supplier.