Firms have decided to raise fees and lower service for those customers who barely pay their way and to coddle big spenders to retain their patronage as long as possible. This is an example of organizing customers by ________.
A) retailer convenience
B) profit tiers
C) psychographic characteristics
D) social influence
E) customer preference

Question

Quizplus · Accepted Answer

The strategy mentioned in the statement is an example of organizing customers by profit tiers, where firms differentiate their treatment of customers based on their profitability.

Firms Have Decided to Raise Fees and Lower Service for Those