1. I go to a store where workers are paid bare minimum, they give me odd looks and make me feel as if I stole their bread or smth.
2. I go to premium stores, where I pay more but they treat me better.
So, I go to premium stores even though I am aware I am losing more money, because in Maslow hierarchy of needs - I am at the top where I want to be treated better not save more money.
Cost of negative interaction is much much greater for me. I randomly have flashbacks of negative experiences but I forget all positive or neutral experiences.
Based on Exchange theory of Price, #2 price is justified.
Now, if you remove the workers in option #2, the interaction goes from negative to neutral and I'll prefer #1.