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:

Excess Returns

Excess returns refer to the amount by which an investment outperforms a benchmark or risk-free rate.

Inside Trades

Transactions in a company's securities made by its officers, directors, or holders of more than 10% of the stock, typically subjected to strict regulatory scrutiny.

Public

Pertaining to or involving the affairs of the community as a whole, often relating to government or public companies accessible to all people.

Semistrong-Form Efficient

A market hypothesis stating that share prices incorporate all publicly available information, making it impossible to consistently achieve higher returns.