What are product transfer costs?

Product transfer costs are "all factors that make it difficult or more expensive for a user to change products or vendors" - all factors.

Specifically when it comes to tech products like websites, cell phones, etc., it's the "perceived monetary costs and perceived non-monetary costs of time, energy, and psychological barriers to switching from one site to another."

To put it this way. It's very abstract, using the example upstairs to make some exaggerated assumptions by the way, iPhone and Nokia, as a Nokia user, probably despite the fact that I find the Nokia experience extremely poor with no use other than smashing walnuts, but I was rejected by Apple in an interview before, so I have a huge prejudice against apple, and made a poisonous oath never to use apple products again in this life.

Of course, the above example is just for easy understanding. Back to the definition, according to the domestic and international definitions of transfer costs, in most cases transfer costs will include the following three categories: programmatic, financial and relational.

First of all, program-based transfer costs are most typical of paper work such as registration, form-filling, etc. The written meaning is: "When customers want to obtain a product or service, they must pay a certain amount of time and effort, which makes the customer to make more investment in the purchase process".

Using the school and microblogging as an example, my school used well, now let me go to open a microblogging, but the registration time a moment to fill in the ID card, a moment to fill in the cell phone number, the password must have upper and lower case numbers and symbols ...... these all increase the transfer cost of microblogging, that is, to be transferred from school to microblogging costs The cost of transferring from the school to the microblogging site is higher.

Secondly, the financial transfer cost, I charged 200 dollars for the membership in the Internet cafe A, Internet cafe B said that my Internet access is 50 cents cheaper than the Internet cafe A. For most users, they will not give up the 200 dollars in the Internet cafe A, at least until they spend it.

Finally, it's relational, and this is something that really belongs to the psychological dimension. The social network is a very good sample. qq has most of my friends, and wechat and qq association, as long as qq friends have wechat I can find him in wechat, then I from qq to wechat "cost" is very low.

And if I were to use People.com at this time, I might not have a single friend for a while at the beginning, and then I would lose a lot of friends here; of course, there is a hard fact in this example, which is that I could have used both.

A more intuitive example is a raw material for suppliers and buyers, the longer the previous cooperation between the suppliers and buyers, the higher the cost of the transfer of the relationship type, because if the transfer of new partners, you need to re-establish the contact, negotiation, trust, tacit understanding and so on. Of course, if the profitability is greater than these transfer costs, then it is possible that the transfer will take place.