switching cost

switching cost
A means of building a competitive advantage into a product or service by involving buyers in an extra cost if they switch to an alternative supplier. It may form part of the physical characteristics of the product, which make it incompatible with the equipment of alternative suppliers (such as a different computer operating system), or the switching cost may result from the disruption of the quality of service formed by a long-established and close working relationship.

Big dictionary of business and management. 2014.

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  • switching cost — UK US noun [C] COMMERCE ► the cost of moving your bank account to another bank, changing to a different phone service, etc: »People put up with bad service because the switching costs are high …   Financial and business terms

  • Switching Cost — Der Begriff Wechselkosten bezeichnet in der Wirtschaft diejenigen Transaktionskosten, die einem Abnehmer durch den Wechsel des Anbieters entstehen. Sie sind die Summe aus den Integrationskosten des neuen Anbieters und den Opportunitätskosten… …   Deutsch Wikipedia

  • Switching cost — Der Begriff Wechselkosten bezeichnet in der Wirtschaft diejenigen Transaktionskosten, die einem Abnehmer durch den Wechsel des Anbieters entstehen. Sie sind die Summe aus den Integrationskosten des neuen Anbieters und den Opportunitätskosten… …   Deutsch Wikipedia

  • Switching barriers — or switching costs are terms used in microeconomics, strategic management, and marketing to describe any impediment to a customer s changing of suppliers. In many markets, consumers are forced to incur costs when switching from one supplier to… …   Wikipedia

  • Switching — Ein Switch (engl. Schalter; auch Weiche) ist eine Netzwerk Komponente zur Verbindung mehrerer Computer bzw. Netz Segmente in einem lokalen Netzwerk (LAN). Da Switches den Netzwerkverkehr analysieren und logische Entscheidungen treffen, werden sie …   Deutsch Wikipedia

  • Switching amplifier — A switching amplifier or class D amplifier is an electronic amplifier which, in contrast to the active resistance used in linear mode AB class amplifiers, uses switching mode of transistor to regulate power delivery. The amplifier, therefore,… …   Wikipedia

  • Switching Costs — The negative costs that a consumer incurs as a result of changing suppliers, brands or products. Although most prevalent switching costs are monetary in nature, there are also psychological, effort and time based switching costs. Sustainable… …   Investment dictionary

  • Switching — Liquidating an existing position and simultaneously reinstating a position in another futures contract of the same type. Symmetric cash matching An extension of cash flow matching that allows for the short term borrowing of funds to satisfy a… …   Financial and business terms

  • Cost Cutting — Measures implemented by a company to reduce its expenses and improve profitability. Cost cutting measures may include laying off employees, reducing employee pay, switching to a less expensive employee health insurance program, downsizing to a… …   Investment dictionary

  • cost-of-carry market — Applies to derivative products. futures contracts trade in a cost of carry market where the underlying commodity can be stored, insured, and converted into the future easily and inexpensively. arbitrageurs, because of the ease of switching from… …   Financial and business terms

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