Many consumers who do online banking are reluctant to change banks because of the effort it would take to change automatic payments and online payments. The "cost" to change include the time and effort it would take to cancel old payments and set up new ones as well as the potential for missing a payment. These "costs" represent _____.
A) opportunity costs
B) barriers to switching
C) switching costs
D) barriers to entry
E) contributory costs

Question

Quizplus · Accepted Answer

The costs mentioned in the question represent switching costs, which are the expenses, effort, and potential losses associated with changing from one product or service provider to another.

Many Consumers Who Do Online Banking Are Reluctant to Change