The more loyal a firm's profitable customers, the lower its customer equity.

Name: The more loyal a firm's profitable customers, the lower its customer equity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The statement is incorrect. The more loyal a firm's profitable customers, the higher its customer equity. Loyal customers provide a steady stream of revenue and are less likely to switch to competitors, resulting in higher customer lifetime value and therefore higher customer equity.

The More Loyal a Firm's Profitable Customers, the Lower Its