Switching Barriers

Switching Barriers are monetary in nature, there are also psychological, effort- and time-based switching costs. It make customers more likely to stay with the provider. Switching Barriers are the costs that a consumer incurs as a result of changing brands, suppliers or products. Types of switching barriers include exit fees, search costs, learning costs, cognitive effort, emotional costs, equipment costs, installation and start-up costs, financial risk, psychological risk, and social risk. Switching Barriers for a buyer are prohibitively high, the situation can be modelled as a monopoly, for a seller, a monopsony, and for both, a bilateral monopoly.