Laredo Bank & Trust uses the janitorial services of ProKleen,which provides necessary cleaning supplies,personnel training,and maintenance services.The other available janitorial services do not provide maintenance services.In this case,if Laredo decides to terminate ProKleen's services and shift to some other agency,it is likely to create _____.
A) high employment costs
B) redemption costs
C) favorable quality status
D) complementary products
E) high switching costs

Question

Quizplus · Accepted Answer

Laredo Bank & Trust uses ProKleen's janitorial services because it provides not only necessary cleaning supplies and personnel training, but also maintenance services. Since the other available janitorial services do not provide maintenance services, if Laredo Bank & Trust decides to terminate ProKleen's services and shift to some other agency, it is likely to create high switching costs. These costs can include costs associated with training new personnel, purchasing new cleaning supplies, and ensuring that maintenance services are provided.

Laredo Bank & Trust Uses the Janitorial Services of ProKleen,which