Sophisticated Firms Have Learned the Marketing Lesson That

question 254

Multiple Choice

Sophisticated firms have learned the marketing lesson that

• A) it is a lot easier to find new customers than to retain existing ones.
• B) according to research, it is equally costly to acquire new customers as it is to retain existing ones.
• C) existing customers do not spend as much as new customers since that latter like the old products rather than the new ones new customers like.
• D) the buying experience, customer satisfaction, and retention can increase firm profits.
• E) unless a marketing promotion to retain customer loyalty can increase market share by at least 5 percent, it is not worth the expenditure.

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Definitions:

Simulated

Refers to something made to imitate a real or genuine thing; often used in experiments, training, or modeling.

Token Economy

A behavior modification system that uses tokens as reinforcing agents for desired behaviors, which can later be exchanged for various rewards.

Operant Conditioning

A behavior adjustment mechanism that operates through the distribution of incentives or the imposition of sanctions.

Systematic Desensitization

A therapy technique used to reduce phobias through gradual exposure to the feared object or situation combined with relaxation exercises.