In the context of Customer Relationship Management (CRM), which of the following statements is true?
A) Customers who experience high value from service do not equate it to high-quality relationship.
B) Loyal customers are more profitable than customers who consider switching brand or providers each time they make a purchase.
C) Irrespective of the relationship quality, customers are highly receptive to brand extensions.
D) High-quality is typified by a consumer who occasionally shops at other stores but keep returning to the preferred store again and again.

Question

Quizplus · Accepted Answer

Loyal customers are more profitable as they tend to make repeat purchases, refer others, and are more forgiving of occasional service issues. Additionally, the cost of acquiring new customers is usually higher than retaining existing ones, making it more cost-effective to invest in building loyalty. The other statements are not true - customers who experience high value from service are likely to equate it to high-quality relationship (A), customers may not be receptive to brand extensions irrespective of the relationship quality (C), and a consumer who occasionally shops at other stores cannot be considered as a high-quality customer (D).

In the Context of Customer Relationship Management (CRM), Which of the Following