Solved

Improving Customer Retention May Have Little or No Effect on Current

Question 33

Multiple Choice

Improving customer retention may have little or no effect on current period profits, but will have a significant effect on future profits because:


A) Over time, customers can be moved into a value-based segment.
B) Over time, predatory customers can be converted into passive customers.
C) Many non-value-added costs will be reduced by extending the duration of the customer relationship.
D) Leverage diminishes with the length of the customer relationship.

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