Which of the Following Is True

question 64

Multiple Choice

Which of the following is true?

• A)There is a strong correlation between long-term business success and short-term customer relationships.
• B)In the retention stage of the customer life cycle,increasing the value of each existing customer is the objective.
• C)In the growth stage of the customer life cycle,a company retains its customers by delivering on its value proposition.
• D)Customer selection and acquisition is just the beginning of the customer life cycle.

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Definitions:

Barriers to Entry

Factors that prevent or hinder new firms from entering an industry, including high startup costs and regulatory restrictions.

Product Differentiation

The process by which companies distinguish their products from those of competitors in the eyes of consumers, through unique features, design, quality, or branding.

Concentration Ratio

A measure used to determine the market share or relative size of the top firms in an industry as an indicator of the level of competition.

Standardized Product

Products that are uniform in quality and performance, produced in large quantities, and often interchangeable with products from different manufacturers.