Switching costs arise when investments are required in order to switch to another product. For example, many people have developed skills in using the traditional qwerty keyboard. Changing to the presumably more efficient dvorak keyboard would require relearning how to type, an investment that in many cases would exceed the expected benefits in efficiency. Switching costs also arise when the quality of a product is difficult to assess. People who live abroad often experience a similar cost when simple purchase decisions such as buying detergent, toothpaste or coffee suddenly become harder because the trusted brand from home is no longer available. Pioneering products have the first chance to become this trusted brand. Consequently, the companies that follow must work hard to convince customers to bear the costs and risks of switching to an untried brand of unknown quality.
Unlike other consumer sectors,the value to customers of many high technology products relies not only on their features but also on the total number of users.For example, the value of a videophone depends on the number of people using the same or a compatible system. A pioneer obviously has the opportunity to build a large user base before competitors enter the market. This reduces followers ability to introduce differentiated products. There are other advantages of a large user base, such as the ability to share computer files with other users. Thus, software companies are often willing to give away products to build the market quickly and set a standard.
【BEC中级真题阅读精讲:第2辑T4P3 市场准入—先驱者】相关文章:
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