Many firms in industrialized countries are focusing their attention on soliciting new customers rather than retaining their existing customers because it is usually cheaper to recruit new customers.

Question

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It is generally more expensive to acquire new customers than to retain existing ones. Retaining customers often involves maintaining satisfaction through good service and customer care, which is usually more cost-effective than the marketing and sales efforts required to acquire new customers.

Many Firms in Industrialized Countries Are Focusing Their Attention on Soliciting