According to the Loyalty Effect, a Five Percent Reduction in Customer

question 62

Multiple Choice

According to the loyalty effect, a five percent reduction in customer attrition can improve profits by as much as __________ percent.

• A) 5
• B) 10
• C) 15
• D) 20

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Definitions:

Communal Relationships

Interpersonal relationships where parties give and receive benefits in response to the other's needs, rather than for personal gain.

Social Species

Species that rely on social connections and groups for survival, exhibiting complex behaviors related to living in communities.

Baumeister and Leary

Refer to psychologists Roy Baumeister and Mark Leary, known for their work on the need to belong theory, which posits that humans have a fundamental drive to form and maintain interpersonal relationships.

Creative

Relating to or involving the imagination or original ideas, especially in the production of an artistic work.