Customer switching

In marketing and microeconomics , customer switching or consumer switching describes ” customers / consumers abandoning a product or service in favor of a competitor “. [1] Assuming constant price , product or service quality , counteracting this behavior in order to achieve maximum customer retention is the business of marketing, public relations and advertising . Brand switching -as opposed to brand loyalty is the outcomecustomer switching behavior .


Variability in quality or market price fluctuations -especially a rise in prices -May lead customers to consult price comparison Where alternative service suppliers May be offered. Declining customer satisfaction may also be necessary to reduce the degree of a symptom of boredom with the brand of choice. [1] Brand loyalty can be very strong, however, and the longer a commitment to a brand, the stronger the ties will usually be.

According to 2013 Nielsen study on customer loyalty , branding can happen for 5 main reasons, but mainly based on price considerations. [2] The overall global averages are:

  1. Better Price (41%)
  2. Better Quality (26%)
  3. Better Service Agreement (15%)
  4. Better Selection (10%)
  5. Better Features (8%)

Because of the dominant role of pricing, market tactics like penetration pricing has evolved to offer a convincing incentive for switching. Another approach is the advertisement of vaporware That Seemingly will offer newer or better features than products without Established Actually Possessing Any innovation .

Affected sectors

Switching is a significant business factor Affecting revenues for companies providing good Continuously Delivered services , as is the case for the energy market as Opposed to Sectors providing good products That Stimulate non-recurring purchase gold sparsely Because of the durability of the product or a general orientation Towards casual customers. [1] Energy customer switching is a significant risk or success factor for energy suppliers .

See also

  • boycott
  • consumerism
  • Customer experience
  • Energy customer switching
  • Push-pull strategy


  1. ^ Jump up to:c “Concept of Consumer-Switching Behavior” . Retrieved 5 October 2017 .
  2. Jump up^ “The Price is Right: Incentives That Stimulate Switching Behavior” . Nielsen. 2013.