With Regard to Customer Defection, Which of the Following Statements

question 64

Multiple Choice

With regard to customer defection, which of the following statements is incorrect?

• A) Defection rates are determined by customer loyalty.
• B) The longer a company holds on to a customer, the greater is the volume of customer-generated unit sales.
• C) Lowering customer defection rates creates a higher cost structure.
• D) The longer a company retains a customer the higher the average unit cost of each sale.
• E) There is a positive relationship between the length of time that a customer stays with the company and profit per customer.

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Definitions:

Kohlberg

Refers to Lawrence Kohlberg, a psychologist best known for his theory of stages of moral development.

Relativism

A philosophical position that claims that truth and morality are subjective and vary depending on culture or individual perspective.

Teleological Philosophies

Ethical theories that assess the morality of actions based on their outcomes or purposes rather than on the actions themselves.

Egoism

A theory that suggests individuals should act in their own self-interest and that this action ultimately benefits society as a whole.