Matt found out that he would have to pay a $450 initial fee to switch service providers for his home security system. Which type of switching costs is the $450 an example of?
A) procedural
B) transactional
C) financial
D) induction

Question

Quizplus · Accepted Answer

The $450 fee is a financial switching cost, as it involves a monetary expense to switch service providers. Procedural switching costs refer to the time and effort needed to learn and adapt to a new system or process, while transactional switching costs involve the hassle of transferring account information and data. Induction switching costs are not a recognized category of switching costs.

Matt Found Out That He Would Have to Pay a $450