MIS 302F Lecture Notes - Lecture 3: Network Effect, Barcode, Inditex

• School: UT-Austin
• Department: Management Information Systems
• Course: MIS 302F
• Professor: S Provost

Document Summary

The cost a consumer incurs when moving from one product to another. It can involve actual money spent (e. g. buying a new product) as well as investments in time, any data loss, and so forth. Switching technologies may require an investment in learning a new interface and commands. Users may have to reenter data, convert files or databases, or even lose earlier contributions on incompatible systems. Can include investments in new equipment, the cost to acquire any new software, consulting, or expertise, and the devaluation of any investment in prior technologies no longer used. Breaking contracts can lead to compensatory damages and harm an organization"s reputation as a reliable partner. Finding and evaluating a new alternative costs time and money. Switching can cause customers to lose out on program benefits. Think frequent purchaser programs that offer miles or points (all enabled and driven by software)