Lionel Smith Ltd

Lionel Smith Ltd. is a traditional men's clothing store. Every fall the owner sends an embossed invitation (much like a wedding invitation) to his regular customers, inviting them to a private reception showing the new fall line of clothes. For Lionel Smith Ltd., one of the benefits of having established a loyal customer base is

A) recognition through industry awards.
B) lower marketing costs associated with reaching loyal customers.
C) that he can be less concerned about competitors' actions.
D) increased price sensitivity among loyal customers.
E) less need for concern about product quality.
Loyal customers are less likely to switch brands due to competitor actions.