When Greg's house was burglarized,he decided to install a new home security system.However,when he learned that an installation would cost him $1000,he decided against it.The cost for the installation is an example of a:
A) procedural switching cost.
B) transactional switching cost.
C) financial switching cost.
D) relational switching cost.
E) rational switching cost.

Question

Quizplus · Accepted Answer

The cost for the installation is a financial switching cost, as it involves a direct monetary expense for the customer. Procedural switching costs refer to the effort or time involved in switching to a new product or service, transactional switching costs refer to fees or penalties associated with ending a contract, relational switching costs refer to the emotional or social ties built with the current provider, and rational switching costs refer to the perceived risks or uncertainties involved in switching.

When Greg's House Was Burglarized,he Decided to Install a New