Customers Can Be Classified into Four Relationship Groups Based on Their

question 90

Multiple Choice

Customers can be classified into four relationship groups based on their profitability and projected loyalty. Which customer type is associated with high profitability and long-term loyalty?

• A) barnacles
• B) strangers
• C) butterflies
• D) true friends
• E) cash cows

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Definitions:

Inelastic Demand Functions

Demand functions that represent situations where the quantity demanded of a good or service changes very little in response to changes in its price.

Monopolist

An individual or entity that is the sole provider of a particular product or service in a market, enabling control over prices.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.

Markets

Places or systems where buyers and sellers engage in exchange of goods, services, and information.