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

Question

Quizplus · Accepted Answer

Customer defection is the opposite of customer retention and would result in decreased profits, rather than increased profits. The other options (lower costs, increased volume of purchases, the ability to charge a price premium, and increased word-of-mouth communication) all contribute to increased profits from customer retention.

The Increased Profits a Service Firm Realizes from Customer Retention