Most Banks Implement Customer Retention Programs Aimed at Their Best

question 84

Multiple Choice

Most banks implement customer retention programs aimed at their best customers. They do this because they know that retaining customers usually results in

• A)a product development growth strategy.
• B)an operational advantage.
• C)opportunities for diversification.
• D)increased long-term profits.
• E)more clearly defined market segments.

Understand the concept of frame dependence and its significance in affecting choices.

Explain the law of small numbers and its role in misjudging statistical probabilities.

Define affect heuristic and its application in quick decision-making processes.

Describe the concept and implications of house money in behavioral finance.

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Definitions:

Spatial Reasoning

The cognitive ability to think about objects in three dimensions and to draw conclusions about those objects from limited information.

Reasoning Ability

The cognitive capacity to process information, draw logical conclusions, and make informed decisions.

Emotional Competence

A learned capability based on emotional intelligence; results in outstanding performance at work.

Daniel Goleman

A psychologist known for his work on emotional intelligence and its importance in leadership and personal success.