Paths for increasing the value of a firm's customer base include which of the following?

Question

Quizplus · Accepted Answer

Acquiring new customers and reducing the turnover of existing customers both contribute to increasing the value of a firm's customer base. Charging higher prices may also increase the value of the customer base, but it may not be a sustainable strategy in the long term. Therefore, option D (both a and b above are true) is the best choice. Option E (all the above are true) is technically correct but too broad because it includes the option of charging higher prices, which may not always be feasible or desirable.

Paths for Increasing the Value of a Firm's Customer Base