Answer:
Switching costs
Explanation:
Switching costs relate to costs that a consumer must incur in order to change from a product, brand, or suppliers to another. Types of a switching cost include transition period normal operations disruption risks that may occur, high cancellation costs, high time and effort required to switch suppliers, and difficulty in getting similar substitutes for the products or services.
The most important factors for having competitive advantage and pricing power by a company are switching costs. As a result of this, companies always try to make it difficult for customers to drop them for their competitors in or to enjoy pricing power that will allow them to charge high prices and make abnormal profit. The high switching costs are used by the companies to lock in customers and this make it easy for to charge customers additional costs without any risk that the company will loose the customers to their competitors.
