After Calculating the CLV of Its Customers, American Auto Supplies

question 32

Multiple Choice

After calculating the CLV of its customers, American Auto Supplies identified its most profitable customers and also found that a significant percentage of its customers are unprofitable. Which of the following actions would American Auto Supplies most likely take based on these findings?

• A) fire its unprofitable customers
• B) offer the highest level of customer service to its unprofitable customers
• C) encourage unprofitable customers to become product champions
• D) discontinue discounts for all but its most profitable customers
• E) provide slightly lower levels of customer service to its most profitable customers

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Definitions:

Melting

The process of turning a solid into a liquid by applying heat.

Shoreline

The shoreline is the boundary line where land meets a body of water, such as an ocean, sea, lake, or river.

Prevailing Winds

Winds consistently coming from one main direction at a specific location on Earth's surface.

Erosive Effects

The results or impacts of erosion, the process by which material from the Earth's surface is worn away by forces such as water, wind, and ice.