A catalog retailer studies about 3,500 variables over the lifetime of a customer's relationship. It has found that customers who are single, between the ages of 22 and 35, and have no children are its least profitable customer segment. By severely reducing the number of communications and promotional offers sent to this segment, this catalog retailer has engaged in ________.
A) customer retention
B) customer acquisition
C) customer abandonment
D) churn rate
E) market basket analysis

Question

Quizplus · Accepted Answer

Customer abandonment refers to the deliberate decision of a company to reduce or discontinue serving a certain customer segment. In this case, the catalog retailer has identified a segment that is not profitable and has reduced its communication and promotional activities targeted towards this group. This strategy aims to cut costs and redirect resources towards more profitable customer segments.

A Catalog Retailer Studies About 3,500 Variables Over the Lifetime