Question

An end user's switching costs are potentially much higher because of the Internet ?

a)True
b)False

Answer 1

The correct answer is False. Switching costs may actually be lower for end users on the Internet.

Step-by-step explanation:

The correct answer is b) False.

Switching costs refer to the costs that a consumer incurs when switching from one product or service to another. In the context of the Internet, switching costs may actually be lower for end users. The Internet provides access to a wide range of options and alternatives, allowing users to easily switch between different providers or platforms without significant financial or time investments.

For example, if a user is dissatisfied with their current email service, they can simply create a new email account with a different provider and start using it without incurring any additional costs or inconvenience. Similarly, if a user is unhappy with their current e-commerce platform, they can easily switch to a different platform that better meets their needs.