Reichheld and Sasser (1990) Have Suggested That Annual Profits Per

question 69

Multiple Choice

Reichheld and Sasser (1990) have suggested that annual profits per customer increase every year over seven years because of various factors.Which of the following is NOT one of the factors that they discovered created incremental profits?

• A)Increased sales through price discounts to customers
• B)Profit from referrals to other customers
• C)Opportunities to cross-sell other services
• D)Profit from increased purchases
• E)Profit from reduced operating costs

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Definitions:

First Selection

The initial choice or decision made from a set of options or alternatives.

Simple Random Sample

A simple random sample of size n from a finite population of size N is a sample selected such that each possible sample of size n has the same probability of being selected.

Probability

An indicator of the probability that a particular event will take place, represented by a numerical value ranging from 0 to 1, with 0 meaning the event cannot happen and 1 meaning the event is certain to happen.

Population

Every individual or item under consideration in a statistical evaluation.