Which of the Following Statements Is True Regarding Customer Loyalty

question 1

Multiple Choice

Which of the following statements is true regarding customer loyalty?

• A)Loyal customers are more expensive to serve.
• B)Loyal customers stimulate revenue growth.
• C)Loyal customers are highly price sensitive.
• D)Retained customers are less profitable than the switchers.

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Definitions:

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or completion.

Sales Price

The amount a buyer pays to purchase a product or service.

Expense Recognition Principle

An accounting principle that dictates expenses should be recognized in the same period as the revenues they help to generate.

Physical Count

A manual inventory verification process where actual items are counted to ensure records match.