Banks spend more money on their head office buildings than most other large corporations because:
A)They tend to be located in financial centers where property prices are high
B)They offer "experience goods",hence they need to signal wealth and stability
C)Their CEOs are more committed to the display of wealth than other CEOs
D)Because their products are essentially commodities,they need to find alternative ways of differentiating.

Question

Quizplus · Accepted Answer

Banks offer experience goods, such as trust and stability, which are intangible and difficult to communicate to customers. Therefore, they need to signal their wealth and stability through impressive and lavish head office buildings. This helps to establish their reputation and differentiate them from their competitors.

Banks Spend More Money on Their Head Office Buildings Than