Customer Retention Programs Are Based on What Concept

question 53

Multiple Choice

Customer retention programs are based on what concept?

• A) Customer excellence is the easiest macro strategy to follow.
• B) Customer relationships should be viewed from a lifetime value perspective.
• C) It is important to maximize profits in the first few months of a customer relationship.
• D) Segmentation,targeting,and positioning analysis should not be rushed.
• E) Firms must spend large amounts of money to retain customers.

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Definitions:

Portfolio

A conglomerate of monetary investments incorporating shares, debentures, material goods, cash on hand, and assets akin to cash, inclusive of mutual funds and ETFs.

Mean

The average of a set of numbers, calculated by dividing the sum of all numbers by the count of numbers.

Investment

The allocation of resources, usually financial, in expectation of generating an income or profit.

Portfolio Expected Return

The weighted average of the expected returns of the assets in an investment portfolio.