Which of the Following Is NOT True of the Strategic

question 7

Multiple Choice

 Which of the following is NOT true of the strategic goal of retaining customers? 

• A) It costs far more to retain an existing customer than to attract a new customer.
• B) Loyal customers are a major asset for every business.
• C) Marketing communications can support efforts to create value for existing customers.
• D) Interactive modes of communication play an important role in retaining customers.

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Installation Costs

Expenses associated with putting fixed assets into operation, including the costs of setting up, assembling, and installing the assets.

Residual Value

The estimated amount that an asset is expected to realize at the end of its useful life.

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation expense for an asset over its useful life.