Which of the Following Statements Concerning Customer Defection Rates Is

question 23

Multiple Choice

Which of the following statements concerning customer defection rates is incorrect?

• A) Defection rates are determined by customer loyalty.
• B) The longer a company holds on to a customer, the greater is the volume of customer-generated unit sales and the lower is the average cost of each sale.
• C) Lowering customer defection rates allows a company to achieve a lower cost structure.
• D) Research and development should address the issue of customer loyalty in product development.
• E) There is a positive relationship between the length of time that a customer stays with the company and profit per customer.

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Definitions:

Enforce Rules

The act of ensuring that the laws or regulations are followed and implementing consequences for those who violate them.

Capital

Financial assets or other resources available to individuals or businesses to fund operations, investments, or growth.

Sole Proprietorship

A business structure where a single individual owns and operates the business, bearing unlimited personal liability.

Proprietor's Opportunity

This term is not commonly defined in financial or business glossaries as a standalone concept. It may refer to entrepreneurial opportunities or advantages available to a business owner but lacks a standard definition.