The article discusses how companies compete for customers who are already loyal to a specific brand, as well as for new customers. The researchers found that firms tend to focus on keeping their existing customers happy, while letting their competitors attract new customers. This pattern persists even when it may not be the most efficient strategy. Switching costs, which make it difficult for customers to switch to a different brand, can actually lead to inefficiencies by encouraging firms to focus on attracting new customers rather than improving their services for existing ones.