Switching Costs: A Key to Understanding and Managing Business Consulting Relationship Longevity

In consultant–client relationships, relationship longevity can create significant cost advantages and operational efficiencies for both client and consultant. At the same time, each party may also be motivated to look for new perspectives and opportunities by switching to new relationships. However, the benefits of replacing one consulting relationship with another are mitigated by switching costs: the costs associated with the act of changing the relationship itself.This chapter explores the concept of switching costs by examining various types of costs, the ways these costs have been conceptualized in the literature, and how these costs may impact the nature and continuity of consultant–client relationships. The chapter will end with a series of hypotheses and suggestions for a research agenda to further develop our understanding of this important phenomenon.