Customer Profitability Analysis

question 72

Multiple Choice

Customer profitability analysis:

• A)Always shows that the company with the highest total sales generates the highest net customer profit.
• B)Always shows that the company with the lowest total sales generates the lowest net customer profit.
• C)Produces the same results as a Pareto analysis.
• D)Helps identify actions that affect customer profitability.
• E)None of the above answers is correct.

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Definitions:

Service-Product Continuum

is a concept that illustrates a range extending from pure service to pure product, showing that most market offerings consist of a mix of both.

Grocery Store

A grocery store is a retail establishment that specializes in selling food and other household goods to consumers for everyday consumption.

Customizing Services

Modifying or tailoring services to meet the specific needs or preferences of individual customers.

Variable Nature of Services

Describes the characteristics of services that make them less consistent and more difficult to standardize compared to physical products.