Economic Benefits Associated with Maintaining Relationships with Current Customers Include

question 59

Multiple Choice

Economic benefits associated with maintaining relationships with current customers include:

• A) Acquisition costs for new customers are huge.
• B) New customers spend more money than long-time customers.
• C) Order processing costs are lower for new customers.
• D) All of these.

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Definitions:

Dividend

A portion of a company's profits allocated by the board of directors to its shareholders.

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock, typically with fixed dividends and without voting rights.

Rate Of Interest

The percent of principal charged by the lender for the use of its money.

Future Value

The value of an investment at a specific date in the future, calculated by applying a rate of interest or return to the principal amount.