Switching Costs

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Switching Costs

In microeconomics, what one must spend in order to upgrade to a higher technology. For example, switching costs may involve purchasing a new, higher quality mobile phone. The higher the switching costs are for a consumer, the less likely that consumer is to adopt the higher technology.
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They are: Interpersonal Relation, Attractiveness of Alternative, Switching Cost, and Service Recovery Evaluation).
He also found that there is a link between relational switching cost (costs related to personal and brand relationship losses) and affective and cognitive loyalty.
Relationship inertia has been attributed by the researchers to switching cost as they were of the opinion that perceived switching cost is directly proportional to relationship inertia or in other words, switching cost acts as a potential inhibitor of changing service providers (Ranaweera and Prabhu, 2003; Leeetal, 2001; Jones et al, 2000; Bansal and Taylor, 1999).
PASQ*RI and PASQ*SC represented binary interaction between perceived automated service quality and inertia and perceived automated service quality and switching cost respectively.
More than 90% of Indian mobile users are on prepaid connections and do not have number loyalty (~churn rate of 4% on monthly basis) - the switching cost of Rs.
CE is the unique equilibrium "almost" everywhere (calculations show that F can be an equilibrium only when switching cost are almost nil, [mu] > 0.
This represents a switching cost for customers, which serves to enhance customer retention.
This represents a switching cost to the subscriber and the inconvenience may deter some subscribers from switching.
We find that the point estimate of the average switching cost is 4.
Furthermore, once an insurer is chosen, there exists a switching cost for changing companies, which reduces the propensity to switch.
In Klemperer's model, all customers are assumed to have the same switching cost.
k is the switching cost incurred at the time of the switch and (4) [Mathematical Expression Omitted] where r denotes the consumers' rate of discount.