Retention Strategies Based on Social Bonds

question 56

Multiple Choice

Retention strategies based on social bonds:

• A) Build long-term relationships through social and interpersonal as well as financial bonds
• B) Use a strategy of mass customization
• C) Are concerned about maintaining customer intimacy
• D) Are the most difficult of the retention strategies to initiate
• E) Create high opportunity costs

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Definitions:

Accounting Principle

A rule or guideline that directs the accounting practices and procedures by providing a framework within which accounts are maintained.

Compensatory Stock Options

Stock options granted to employees as part of their compensation package, usually with certain conditions attached.

Common Stock

A type of security that represents ownership in a corporation and gives shareholders voting rights and eligibility for dividends.

Market Price

The ongoing rate at which a service or asset can be purchased or sold within a market setting.