Switching costs may:Question 8Select one:a.Give later entrants a cost advantage over early entrants.b.Drive early entrants out of the market.c.Make it difficult for later entrants to win business.d.Make it easy for later entrants to win business.

Switching costs refer to the:a.Cost to a producer to exchange equipment in a facility when new technologies emerge.b.Cost of changing the firm’s strategic group.c.One-time costs suppliers incur when selling to a different customer.d.d. One-time costs customers incur when buying from a different supplier.

Switching costs is:1 pointThe extra money employers pay for employees who are good at multitasking.The money some companies fine employees for making mistakes while multitasking.The extra time it takes to start a task, then stop it, then start it again.A fee some companies will pay a vendor to complete their work first.

Potential entrants are more likely to be deterred from actually entering an industry whenMultiple Choicethe relative cost positions of incumbent firms are about the same, such that no one incumbent has a meaningful cost advantage.buyers are not particularly price-sensitive and the industry already contains a dozen or more rivals.incumbent firms are complacent.buyer switching costs are moderately low because of strong product differentiation among incumbent firms.incumbent firms are willing and able to be aggressive in defending their market positions against entry.

The lower the buyers’ switching costs, the tougher it is for competitors to attract buyers through pricing and service offerings.Question 16Answera.Trueb.False

11. What is switching? Describe the types of switching with their advantages and disadvantages. [1+9]