The Smith boys want to get the new Xbox console for Christmas, but their parents are hesitant to buy it because the family already owns the two latest versions of the PlayStation consoles with multiple games and extra controllers. Their decision to remain with the PlayStation is due to which of the following?
A) Switching costs
B) Bargaining power
C) Risk of entry
D) Brand loyalty
E) Lack of economies of scale

Question

Quizplus · Accepted Answer

Switching costs are relevant here because the family has already invested in the PlayStation ecosystem, including games and accessories, making the switch to a new console system potentially costly and inconvenient.

The Smith Boys Want to Get the New Xbox Console