Firms Such as GM and Frito-Lay Have Learned Which of the Following

question 124

Multiple Choice

Firms such as GM and Frito-Lay have learned which of the following marketing lessons?

• A) It is a lot easier to find new customers than to retain existing ones.
• B) According to research, it is equally costly to acquire new customers and retain existing ones.
• C) Existing customers do not spend as much as new customers since the former like the old products rather than the new ones new customers like.
• D) The buying experience, customer satisfaction, and customer retention can increase a firm's profits.
• E) Unless a marketing promotion to retain customer loyalty can increase market share by at least 5 percent, it is not worth the expenditure.

---

Definitions:

Ending Inventory

Ending inventory refers to the total value or quantity of unsold goods that a company holds at the end of an accounting period.

Cash Disbursements

The outflow of cash for expenses or investments, typically detailed in a financial planning or accounting report.

Goods Purchased

Items bought by a company for resale or use in production, contributing to inventory.

Variable Selling Expenses

Costs that fluctuate in direct proportion to changes in sales volume, such as commissions and shipping charges.