Which of the following has the strongest effect on a service provider's profits?

Question

Quizplus · Accepted Answer

Customer defection has a strong impact on a service provider's profits because it directly affects the revenue stream. Losing customers means losing ongoing revenue, and acquiring new customers to replace them can be significantly more expensive than retaining existing ones. This can have a more immediate and substantial effect on profits compared to factors like market share, unit costs, location, and employee salaries.

Which of the Following Has the Strongest Effect on a Service