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:

Credit Analysis

The process of determining the probability that customers will or will not pay.

Payables Policy

The guidelines a company follows regarding how and when it will pay its bills and invoices to creditors.

Collection Policy

A set of guidelines and procedures followed by a business to collect accounts receivable or outstanding debts from clients or customers.

Collection Policy

A collection policy outlines the procedures a company uses to collect accounts receivable, including timelines, communication strategies, and actions for overdue payments.