Customer Retention Programs Are Based on What Concept

question 6

Multiple Choice

Customer retention programs are based on what concept?

• A)Customer excellence is the easiest macro strategy to follow.
• B)Customer relationships should be viewed from a lifetime value perspective rather than on a transaction-by-transaction basis.
• C)It is important to maximize profits in the first few months of a customer relationship.
• D)Segmentation, targeting, and positioning analysis should not be rushed.
• E)Firms must spend large amounts of money to retain customers.

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Definitions:

Indirect Costs

Expenses that are not directly attributable to a specific project, product, or activity but are necessary for the general operation of a business, such as utilities or administrative salaries.

Processing Further

The decision-making process regarding the continuation of product development or production beyond designated stages, considering additional costs and benefits.

Contribution Margin

The sum of money left over after variable costs are subtracted, which is utilized to pay for fixed costs and to produce a profit.

Production Capacity

The maximum output that a production facility can create over a specified period under normal operating conditions.