Captive Customers Differ from Unprofitable Customers in That Captive Customers

question 54

Multiple Choice

Captive customers differ from unprofitable customers in that captive customers ________.

• A)are the result of mismanaged customer selection
• B)are simply "big spenders"
• C)are a drain on a business's profits because the cost of acquiring them can never be recovered
• D)have a low desire to repurchase but are unable to move easily to another company's product
• E)produce a referral value that is over three times their customer lifetime value

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Definitions:

Normative Decision Model

A leadership model suggesting the best course of action is dependent on certain norms, situations, or circumstances.

Participative Leadership

A leadership style where leaders involve team members in the decision-making process, enhancing engagement and commitment.

Satisfaction

The feeling of contentment or pleasure derived from meeting one's desires, expectations, or needs.

Decision Procedures

The methodologies, rules, or steps used to select a course of action among several alternatives.