A Catalog Retailer Studies About 3,500 Variables Over the Lifetime

question 83

Multiple Choice

A catalog retailer studies about 3,500 variables over the lifetime of a customer's relationship. It has found that customers who are married, are between the ages of 31 and 44, and have moved within the past year are its most profitable customer segment. By sending promotional offers to noncustomers who also fit this description, this catalog retailer has engaged in ________.

• A) customer retention
• B) customer acquisition
• C) customer abandonment
• D) customer accrual
• E) market basket analysis

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Definitions:

Market Prices

The price point at this moment for the sale or purchase of a service or asset.

Externalities

The cost or benefit that affects a party who did not choose to incur that cost or benefit, often not reflected in market prices.

Market Power

The ability of a firm or group of firms to influence the price and production levels of a product or service in the market.

Market Failure

A scenario where the distribution of goods and services by an unregulated market fails to be effective, frequently causing a decrease in overall social welfare.