If an Unprofitable Customer Cannot Be Turned into a Profitable

question 25

Multiple Choice

If an unprofitable customer cannot be turned into a profitable one,the company should consider

• A)Lowering its selling price for the customer
• B)Dropping the customer
• C)Increasing the selling price until the customer become profitable
• D)Not dropping the customer.

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Definitions:

Performance Appraisals

The systematic evaluation of employees' work performance, typically conducted by supervisors or managers to provide feedback and identify areas for development.

Employees' Performance

The quality and efficiency of work produced by workers, often evaluated to inform improvements and rewards.

Central Tendency Error

The inaccurately concentrated rating of all employees towards the middle of a performance scale, avoiding the extremes of high and low evaluations.

Perceptual Error

A cognitive mistake that occurs when interpreting information about the environment, often leading to inaccuracies in judgment or understanding.