Sophisticated firms have learned the marketing lesson that
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 latter like the old products rather than the new ones new customers like.
D) the buying experience, customer satisfaction, and retention can increase firm 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.

Question

Quizplus · Accepted Answer

Sophisticated firms have learned that retaining existing customers can lead to increased profits through improved customer satisfaction and brand loyalty. It is often more cost-effective to retain existing customers than to acquire new ones. Therefore, a focus on the buying experience, customer satisfaction, and retention strategies can lead to increased profitability in the long term.

Sophisticated Firms Have Learned the Marketing Lesson That