Which of the following types of switching costs consists of the total economic resources that must be spent or invested as a consumer learns how to obtain value from a new product choice?
A) Procedural switching cost
B) Transactional switching cost
C) Relational switching cost
D) Financial switching cost
E) Rational switching cost

Question

Quizplus · Accepted Answer

Financial switching costs refers to the monetary outlay necessary for the consumer to switch to a new product. This includes costs related to purchasing the new product, disposing of the old one, or paying penalties for early termination of contracts. Learning how to use the new product and obtaining value from it is not a financial cost, but rather a procedural switching cost.

Which of the Following Types of Switching Costs Consists of the Total