Which of the Following Holds True for Brand-Loyal Customers

question 20

Multiple Choice

Which of the following holds true for brand-loyal customers?

• A)They are less sensitive to product quality.
• B)The marketing costs of reaching loyal consumers are very high.
• C)They need an extra push to buy a firm's brands.
• D)They insulate a firm from competition with their high levels of loyalty.
• E)They are a drain on a firm's finances as they need to be constantly rewarded.

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Definitions:

Creditor

An individual or institution that lends money or extends credit to another entity, which is obliged to pay back the loan.

Pledge

The transfer of collateral to a secured party.

Collateral

Assets pledged by a borrower to secure a loan or credit, which the lender can seize if the borrower defaults on the repayment.

Perfection

In legal and financial contexts, the process of securing an interest in property to achieve priority over third parties in relation to the property.