Final answer:
Low switching costs for customers is not a key characteristic that leads to a difficult competitive environment for service industries.
Step-by-step explanation:
The correct answer is Low switching costs for customers.
In a competitive environment, where multiple service industries are vying for customers, high switching costs for customers can be a key characteristic that leads to difficulty for service industries.
Switching costs refer to the costs that customers have to incur in order to switch from one service provider to another. These costs can be financial (such as cancellation fees or initiation fees) or non-financial (such as time and effort spent in researching and transitioning to a new service).
When switching costs are high, customers are less likely to switch to a different service provider, even if they are dissatisfied with their current provider. This reduces the level of competition in the market and makes it easier for service industries to maintain their market share.
On the other hand, when switching costs are low, customers have more flexibility and freedom to switch providers. This increases competition among service industries, as customers can easily switch to providers that offer better prices, quality, or convenience. Low switching costs incentivize service industries to continuously improve their offerings in order to retain customers and gain a competitive edge in the market.