Question

When customers become dependent on mutually beneficial inter-enterprise information systems, they become reluctant to switch to a company's competitors because they would incur all following costs except:

a) Transition costs
b) Implementation costs
c) Search costs
d) Opportunity costs

Answer 1

Customers are hesitant to switch to competitors due to transition, implementation, and search costs associated with changing information systems. Opportunity costs represent potential benefits lost, not actual expenses incurred during a switch, and thus are not a cost faced by customers in this scenario.

Step-by-step explanation:

When customers become dependent on mutually beneficial inter-enterprise information systems, they may experience reluctance to switch to a company's competitors because of various costs. These can include transition costs, the expenses and efforts involved in moving to a new company's system, and implementation costs, which are the actual expenses of setting up a new system. Search costs might be incurred while looking for alternate providers. However, opportunity costs are not an actual expense incurred; instead, they represent the potential benefits lost when choosing one alternative over another and therefore would not be included in this context.