Which of the Following Is NOT One of the Benefits

question 59

Multiple Choice

Which of the following is NOT one of the benefits of retaining loyal customers?

• A) Loyal customers are more likely to purchase high margin supplemental products.
• B) Loyal customers are more price-sensitive.
• C) It is less expensive to service existing customers.
• D) Loyal customer refer other customers and engage in positive word-of-mouth.
• E) Loyal customers make employees' jobs easier and more satisfying.

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Definitions:

Common Stock

An investment vehicle that indicates a partial ownership stake in a corporation, offering the investor voting privileges and a fraction of the company's profits in the form of dividends.

Par Value

The stated or par value of a bond, stock share, or coupon as indicated by the issuing entity.

Shares

Units of ownership interest in a corporation or financial asset, providing a share in profits and an entitlement to company assets and dividends.

Total Stockholders' Equity

The net value of a company, calculated as total assets minus total liabilities.