Loyalty Programs Affect the Longevity of Customers by Reducing Their

question 8

True/False

Loyalty programs affect the longevity of customers by reducing their switching costs.

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets, calculated as current assets divided by current liabilities.

Cash Equivalents

Short-term, highly liquid investments that are easily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Quick Ratio

A measure of a company's ability to meet its short-term obligations using its most liquid assets.

Accounts Receivable

Accounts receivable represents the money owed to a company by its customers for goods or services that have been delivered but not yet paid for, essentially an extension of credit from the company to the customer.