Sophisticated Firms Have Learned the Marketing Lesson That

question 254

Multiple Choice

Sophisticated firms have learned the marketing lesson that

• A) it is a lot easier to find new customers than to retain existing ones.
• B) according to research, it is equally costly to acquire new customers as it is to retain existing ones.
• C) existing customers do not spend as much as new customers since that latter like the old products rather than the new ones new customers like.
• D) the buying experience, customer satisfaction, and retention can increase firm profits.
• E) unless a marketing promotion to retain customer loyalty can increase market share by at least 5 percent, it is not worth the expenditure.

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Definitions:

Least Squares Regression Line

A straight line that minimizes the sum of the squared differences between observed and predicted values in a dataset.

Slope

In the context of a linear equation, slope represents the rate of change between two variables, indicating how much one variable changes for a unit change in another variable.

Predicted Value

The estimated outcome based on a statistical model or regression analysis.

Least Squares Regression Line

This is a straight line that best fits the data on a scatter plot, minimizing the sum of the squares of the vertical distances of the points from the line.