The increased profits a service firm realizes from customer retention result from all of the following EXCEPT:

Question

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Customer churn refers to the loss of customers, so it would not contribute to increased profits from customer retention. The other options (lower costs, increased volume of purchases, ability to charge a price premium, and increased word-of-mouth communication) are all benefits of retaining customers and can lead to increased profits.

The Increased Profits a Service Firm Realizes from Customer Retention