Which of the Following Statements Concerning Customer Defection Rates Is

question 8

Multiple Choice

Which of the following statements concerning customer defection rates is incorrect?

• A) Defection rates are determined by customer loyalty.
• B) The longer a company holds on to a customer, the volume of customer-generated unit sales is greater and the average cost of each sale is lower.
• C) Lowering customer defection rates allows a company to achieve a lower cost structure.
• D) R&D should address the issue of customer loyalty in product development.
• E) There is a positive relationship between length of time that a customer stays with the company and profit per customer.

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Definitions:

Feasibility Study

An analysis and evaluation of a proposed project to determine if it is technically, financially, and legally possible.

Planning Phase

The initial stage of a project or process where goals are defined, strategies are developed, and tasks are planned.

SQL

A standardized language for managing and manipulating relational databases.

Database Content

The data and information stored within a database, including records, fields, and database-specific configurations.