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 includes 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. What do these "costs" represent?
A) opportunity costs
B) switching costs
C) barrier costs
D) contributory costs

Question

Quizplus · Accepted Answer

These costs represent switching costs, as they are the costs associated with switching from one bank to another, including cancelling old payments and setting up new ones.

Many Consumers Who Do Online Banking Are Reluctant to Change