In lost-for-good accounts,
A) Customers can allocate their purchases to several vendors
B) A period of no purchases can be followed by a period of high purchases
C) Suppliers are largely interchangeable
D) Switching costs are significant
E) Customers are not tied to a system

Question

Quizplus · Accepted Answer

In lost-for-good accounts, switching costs are significant, meaning that once a customer switches away from a supplier, they are unlikely to return due to the high cost of switching back. This contrasts with situations where suppliers are easily interchangeable or where customers are not tied to a specific system, making it easier for them to switch between suppliers without incurring significant costs.

In Lost-For-Good Accounts