When Compared with New Customers, Loyal Customers Do Which of the Following

question 29

Multiple Choice

When compared with new customers, loyal customers do which of the following?

• A)Spend less over time, cost less to serve and spend more on single purchases.
• B)Are less profitable to the company than new customers.
• C)Spend more over time, cost less to serve, are less price sensitive, and generate referrals through wordofmouth communication.
• D)Account for more of the customer service complaints.

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Definitions:

Individual Profits

The net gains or benefits accruing to an individual business after subtracting all expenses, costs, and taxes needed to sustain the business operations.

Tying

A sales practice where a seller requires the purchase of additional goods or services as a condition for buying a given product.

Profit-Maximizing Price

The profit-maximizing price is the price point at which a business can sell its product or service to maximize its profit margin, given its cost structure and market demand.

Narthex

The entrance or lobby area, typically located at the west end of an early Christian or medieval church, used for gathering before services.