Relationships cemented by switching costs are called:
A) Costly relationships
B) Lost-for-good relationships
C) Grudging relationships
D) Troubled relationships
E) Always-a-share relationships

Question

Quizplus · Accepted Answer

Relationships cemented by switching costs are referred to as lost-for-good relationships because it is difficult and costly for customers to switch to a competitor once they have invested time, money, and effort in a certain vendor or product. This creates a sense of loyalty even if the customer is dissatisfied with the product or service. Hence, these relationships are considered lost-for-good as it is challenging to win back customers once they have made such investments.

Relationships Cemented by Switching Costs Are Called