Identify the INCORRECT statement about unprofitable customers.
A) Credit card holders who pay off their balances on time are not unprofitable
B) Unprofitable customers could be cable subscribers in remote areas
C) "High maintenance" customers who heavily use free services may be unprofitable
D) Customers unprofitable in the short run may be very profitable in the long run
E) Firms with high percentages of unprofitable customers are often involved in "slamming."

Question

Quizplus · Accepted Answer

Credit card holders who pay off their balances on time can actually be unprofitable for credit card companies because these companies do not earn interest revenue from these customers.

Identify the INCORRECT Statement About Unprofitable Customers