Question

When Sheri, a socialite, got some bad publicity for her recent choice of evening wear, she decided to change designers. However, when Sheri visited her new designer for the first time, she missed the camaraderie and the easy banter she used to share with Margo, her previous designer.Which of the following types of switching costs was being experienced by Sheri?a. Procedural switching costb. Financial switching costc. Relational switching costd. Rational switching coste. Affective switching cost

Answer 1

Answer:

The correct answer is the option C: Relational switching cost.

Explanation:

To begin with, the concept known as ''switching cost'' in the field of business, basically refers to all the costs involved in the procedure of switching from a supplier to a new one. Moreover, this term also involves many different types, such as financial switching costs, procedural switching costs and relational switching costs.

To continue, the third one, the relational switching cost refers to the situation where a company has changed its supplier and a big loss of identification and emotional bonds changed as well with it. Furthermore, when relational switching costs take place the personal relationships between the people involved in the transactions of the company are lost and that generates an impact in the new relationships with the new supplier.