Based　on　the　switching　cost　of　consumer　behavior,　the　three-stage　decision　model　from　the　debt　libility　effect　was　built　to　analyse　the　financing　strategy　in　capital　market　and　pricing　strategy　in　product　market.　Firstly,　the　research　shows　that　the　switch　cost　has　＇Bargains-then-Ripoffs＇　effect　in　product　market　competition,　but　the　strategical　effect　of　debt　financing　will　weaken　this　effect.　Secondly,　the　pricing　strategy　would　be　dependent　on　the　firm＇s　preference　and　tradeoff　between　the　two　effects.　Thirdly,　the　firm　will　decrease　its　ex-ante　the　ratio　of　debt　financing　and　take　conservative　financing　behavior　when　it　faces　the　product　marker　with　high　switching　costs.　Finally,　the　outer　market　environment　will　directly　effect　the　firm＇s　financing　strategy　and　then　indirectly　its　pricing　strategy.