In recent decades, many service markets have been liberalized. For this reason, incumbent service firms are facing new competitors and must address customer switching. You are discussing the determinants of customer switching with a service firm manager. She believes that product quality, relationship quality, and switching costs are important determinants of customer switching.
You agree with the contention that product quality and relationship quality are important determinants of switching. However, you believe that switching costs moderates the relationships between product quality, relationship quality and customer switching.