Which of the Following Can a Company Do to Reduce

question 27

Multiple Choice

Which of the following can a company do to reduce defection?

• A) Attract new customers to try out the company's products.
• B) Increase customer lifetime value by increasing the non-monetary costs of products.
• C) Enhance the growth potential of existing customers through cross-selling and upselling.
• D) Distinguish the causes of customer attrition and identify those that can be managed better.
• E) Make low-profit customers more profitable or terminate the relationship.

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Definitions:

Profit-maximizing

A strategy in business where the main goal is to increase profits to the highest possible level given the constraints of the market.

Elastic Segment

A portion of the demand curve where the quantity demanded is highly sensitive to changes in price.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity of it that consumers are willing to purchase at various prices.

Total Revenue

The total income received by a company from its sales of goods or services before any expenses are subtracted.