Large Firms Tend to Make Up the Majority of the Most

question 21

Essay

Large firms tend to make up the majority of the most profitable customers AND of the least profitable customers. What are some of the characteristics that define both high-cost-to-serve and low-cost-to-serve customers? What can business marketers do to manage high and low cost-to-serve customers?

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Definitions:

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end user.

Specialty Product

Item that a purchaser is willing to make a special effort to obtain.

Shopping Product

A type of product that consumers purchase after comparing quality, price, and style from several sellers, dedicating time and effort to ensure satisfaction.