What would it take you to switch from Geico to Progressive? Easy. An irresistible pricing offer from Progressive will do the trick.
What would it take you to switch from ATT wireless to Verizon? Relatively easy and the wireless providers knows it. Hence when you sign up, they gladly make you part of the family by locking you into a few years of service contract.
What would it take you to switch your everyday newspaper to a different one? Not easy. The news paper has to consistently derail your expectations in news content to make you switch.
Facebook stands very high in this order of switching costs.
They operate on Internet business models which provides a platform for humans to connect with his fellow being. The switching cost in social networking sites are very high due to the simple fact that you want to be where your friends are. The social factor allows Facebook and the likes to successfully lock in users without charging a dime for the service. Social networking platforms like Facebook runs extensive algorithms to find the underlying commonalities in their user base, based on a variety of demographic criterion. Facebook in turn hands over these sets of user information to consumer product and services companies who uses this valuable information to launch targeted advertisements. By providing a platform for people to connect, collecting user information, analyzing and providing organized sets of information to third parties enables Facebook to run very profitable business operations.
Social networking switching cost is going to remain high for a foreseeable future. The inherent need of humans to stay connected is also likely to remain high as well. In the light of Facebook’s recent privacy issues up in the air, Washington needs to create a new Chief Privacy Officer or it is the responsibility of the user to be his or her own CPO.
In a free society the choice is yours!