What type of switching cost is being incurred when cellular telephone companies require their customers to pay stiff penalties if they change carriers?
A) expense necessary to purchase a replacement product
B) psychological expense
C) expenses of breaking contractual arrangements
D) time spent learning new systems

Question

Quizplus · Accepted Answer

The cost incurred is due to breaking contractual arrangements, as customers have to pay penalties for switching carriers before the contract term ends.

What Type of Switching Cost Is Being Incurred When Cellular