Sophisticated Firms Have Learned the Following Marketing Lesson

question 91

Multiple Choice

Sophisticated firms have learned the following marketing lesson:

• 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 former like the old products rather than the new ones new customers like.
• D)The buying experience,customer satisfaction,and retention can increase a firm's 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:

Dissociation

The process of a member withdrawing from a partnership or a member's interest being terminated, affecting the relationship between the members of a business entity.

Manager-Managed LLC

A limited liability company where the daily operations are overseen by appointed managers rather than all members.

LLC Members

Individuals or entities that own an interest in a limited liability company and have rights and responsibilities outlined in the LLC's operating agreement.

Limited Liability Company

A corporate framework that merges the direct tax benefits of partnerships or sole proprietorships with the protective limited liability features of a corporation.