Identify the INCORRECT Statement About Lost-For-Good Relationships

question 39

Multiple Choice

Identify the INCORRECT statement about lost-for-good relationships.

• A) They are relationships cemented by switching costs
• B) These relationships motivate retention by accentuating the "dark side"
• C) Consistent high performance is required to retain these accounts
• D) These types of accounts do not have excellent staying power
• E) Here the prospects of a customer returning to the incumbent are remote

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Definitions:

Carrying Cost

The complete expense associated with maintaining stock, which encompasses costs for storage, management, decrease in value, and missed opportunities.

Order Costs

Expenses associated with placing orders for products or services, including costs involved in ordering and receiving goods.

Effective Annual Rate

The interest rate on an investment or loan that is adjusted for compounding over a specified period, often annually.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including the repayment schedule, interest rate, and the term of the loan.