American Express Will Do Almost Anything to Build Long-Term Customer

question 126

Multiple Choice

American Express will do almost anything to build long-term customer loyalty and to capture customer lifetime value. Which of the following competitive marketing strategies is being pursued by American Express?

• A) consumer capitalism
• B) customer equity
• C) product differentiation
• D) product leadership
• E) customer intimacy

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Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Debt Financing

Debt Financing involves raising capital through borrowing money that must be repaid over time, with interest.

Cost of Capital

The return a company needs to earn on its investment projects to maintain its value and attract funds.

Financial Decision Makers

Individuals or groups responsible for making investment, financing, and dividend decisions within a company.