After 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. In the given scenario, the cost for the installation is an example of a:
A) transactional switching cost.
B) financial switching cost.
C) relational switching cost.
D) procedural switching cost.

Question

Quizplus · Accepted Answer

The cost of installing a new home security system is a financial switching cost, which refers to the costs involved in switching to a new product or service. In this case, the cost of installation is a one-time financial cost that Greg would have to pay to switch to a new home security system, making it an example of a financial switching cost.

After Greg's House Was Burglarized, He Decided to Install a New