Some banks offer special accounts designed to attract junior high school students. Savings in these accounts are generally small amounts, which cost banks more to maintain than they are worth; however, bankers know that consumers are creatures of habit and hope that these young people will become adult customers. These banks recognize
A)that operational excellence is an important macro strategy.
B)the lifetime value of customers.
C)that product excellence leads to loyal customers.
D)the importance of making decisions based on short-term results.
E)that if customers bring in some revenue, costs do not matter.

Question

Quizplus · Accepted Answer

The banks offering special accounts for junior high school students understand the concept of the lifetime value of customers. They are willing to incur the cost of maintaining these small accounts in the hopes that these young customers will become loyal adult customers in the future, thus increasing their overall profits.

Some Banks Offer Special Accounts Designed to Attract Junior High