Which of the Following Statements About Retaining Customers Is FALSE

question 84

Multiple Choice

Which of the following statements about retaining customers is FALSE?

• A) Firms that set explicit targets for customer retention are more profitable than those, which do not set targets.
• B) On average companies lose 20-50 of their customers every year.
• C) Salespeople usually have little influence over customer retention.
• D) A slight dip in attention by a salesperson can lead to willingness to consider alternative sources.
• E) Some industries are just beginning to recognize the value of retaining customers.

---

Definitions:

Dollarization

Dollarization occurs when a country adopts the US dollar as a parallel or exclusive currency in its economy, either officially or unofficially, to stabilize the economy.

Foreign Exchange Rates

The value of one currency for the purpose of conversion to another.

Nonfinancial Customers

Individuals or entities that engage in transactions or relationships with businesses not primarily involving financial products or services.

Currency Valuation

The process of determining the relative value of one currency against another based on economic indicators, market demand, and governmental policies.