Question

Every month the pest exterminator does a monthly spraying at Mike Wade's house. Every month Wade gripes that he is being ripped off by the exterminating company and how he's going to find a new one. But he never does change service providers due to:

A. The iteration principle
B. Customer inertia
C. Service standardization
D. Switching costs
E. Process reciprocity

Answer 1

Mike Wade's reluctance to change pest extermination services despite dissatisfaction exemplifies 'Customer inertia,' a phenomenon where customers stick with a service out of convenience or aversion to the effort of switching.

Step-by-step explanation:

The situation described where Mike Wade continues to use the same pest extermination service despite being unsatisfied suggests an instance of Customer inertia. This term describes a situation where a customer continues to purchase a product or service from the same provider out of convenience or from a reluctance to go through the effort of finding a new provider. It’s not about service quality improvement or direct monetary costs, but rather about the reluctance or effort involved in making a change.