Description: The ‘Vendor Lock-in’ refers to a situation where a customer becomes dependent on a specific vendor for the acquisition of products and services. This phenomenon can arise in various industries but is particularly notable in technology and services sectors, where vendors can offer customized solutions and exceptional customer service. Dependence can manifest in customer loyalty towards a particular vendor, which may limit their ability to explore other options in the market. This type of lock-in can be beneficial for the vendor, as it ensures a loyal customer base, but it can also be detrimental to the customer, who may miss out on opportunities to obtain better prices or products more suited to their needs. ‘Vendor Lock-in’ can influence sales dynamics and marketing strategy, as vendors must find a balance between maintaining customer loyalty and fostering healthy competition in the market.
