At LaRue Fashions,there is a certain customer that makes large purchases every Friday and returns everything two weeks later.In response,the manager recently created a policy and published it including specifics of their terms of returned merchandise stating that all tags must be adhered,the clothing must not have been worn and must be returned within seven days to receive credit.Which of the following best describes what the retailer is doing?
A)cutting back on mail outs
B)getting the lead out
C)increasing their costs
D)soliciting feedback
E)cutting off services

Question

Quizplus · Accepted Answer

In many cases,the bottom tier of customers actually has a negative customer lifetime value (CLV).Retailers lose money on every sale they make to these customers.Retailers often implement the process of not selling to these unprofitable customers.

At LaRue Fashions,there Is a Certain Customer That Makes Large