Firms like Ford and Frito-Lay have learned which of the following marketing lessons?
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 and 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 expenditue

Question

Quizplus · Accepted Answer

The passage highlights the importance of customer satisfaction and retention in increasing a firm's profits. The examples of Ford and Frito-Lay suggest that they have learned this marketing lesson. The passage also mentions that each additional percentage point of customer retention is worth $100 million in profits for Ford. Therefore, option D is the correct choice. The other options (A, B, C, and E) are incorrect as they do not reflect the main idea of the passage or are contradicted by the information provided.

Firms Like Ford and Frito-Lay Have Learned Which of the Following