Attracting and Retaining Loyal Customers Is the Most Important Issue

question 62

True/False

Attracting and retaining loyal customers is the most important issue for e-tailers because customer loyalty can lower marketing and advertising costs,transaction costs,customer turnover expenses,and failure costs such as warranty claims.

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Definitions:

Additional Costs

Are extra costs that may not have been initially accounted for or that occur beyond the expected costs of production or operations.

Additional Benefits

The perks or supplementary advantages that come in addition to the primary benefits of a product, service, or policy.

Marginal Analysis

Marginal Analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity.

Relevant Costs

Only those costs that will be affected by a decision or action and therefore should be considered in decision-making.