The Text Classifies Customers into Four Relationship Groups,according to the Customers

question 94

Multiple Choice

The text classifies customers into four relationship groups,according to the customers' profitability and projected loyalty.________ are the customers with the highest profit potential and strong loyalty.

• A)Barnacles
• B)Strangers
• C)Butterflies
• D)True friends
• E)Big fish

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Definitions:

Maximize Profits

The process by which businesses aim to achieve the highest possible profit through revenue maximization and/or cost minimization strategies.

Minimize Losses

Minimize losses refers to strategies or actions taken by businesses and investors to reduce financial losses or the negative impact of less successful investments.

Marginal Cost (MC)

The cost of producing one additional unit of output.

Marginal Revenue (MR)

The revenue derived from selling one additional unit of output.