It May Appear That All Unprofitable Customers Should Be Dropped

question 45

Essay

It may appear that all unprofitable customers should be dropped. However, before any action is taken, managers should evaluate all the implications of the action for the affected customer, for other customers, and for the company.

Required:

a. Explain three implications for the affected customer.

b. Explain three implications for other customers.

c. Explain three implications for the company.