LifeTime Insurance Screens Its Customers and Tries to Get Unprofitable

question 107

Multiple Choice

LifeTime Insurance screens its customers and tries to get unprofitable customers to buy services from competitors. This is an example of ________.

• A) trying to increase the retention rate for low-profit customers
• B) terminating the relationship with low-profit customers
• C) enhancing the growth potential of each customer through up-selling
• D) increasing the longevity of the customer relationship
• E) reducing the rate of customer defection

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Definitions:

Martin Seligman

A psychologist known for his work on the theory of learned helplessness, positive psychology, and well-being.

Theory of Depression

An explanation of depression that might integrate biological, psychological, and social factors influencing its development and maintenance.

Learned Helplessness

A state where an individual feels helpless, stemming from experiencing a traumatic incident or continual inability to achieve success.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more contradictory beliefs, ideas, or values, or when one's behavior contradicts their established beliefs.