Final answer:
Switching costs are barriers that discourage customers from changing products or services, which can be monetary or non-monetary. They are leveraged by companies to ensure customer retention by making alternatives less appealing.
The correct option is B.
Step-by-step explanation:
The costs that make customers reluctant to switch to another product or service are known as switching costs.
These costs encompass a variety of potential barriers that customers might face when considering a change from one product or service to another. They can be monetary, such as fees for terminating a contract early, or non-monetary, such as time spent learning a new system, personal discomfort, or loss of loyalty rewards.
Switching costs create a deterrent effect against customers seeking alternative options. They are intentionally leveraged by companies to foster customer retention by making the process of switching seem less appealing. These tactics can significantly affect consumer choice and competition within the market.
The correct option is B.