Short-term profit decisions can cause firms to lose customers in the long run.

Question

Quizplus · Accepted Answer

Short-term profit decisions may prioritize maximizing profits in the present moment, but if they are made at the expense of customer satisfaction, it can drive customers away in the future, resulting in long-term losses. In contrast, prioritizing customer satisfaction even if it may not result in immediate profits can lead to customer loyalty and repeat business, resulting in long-term gains for the firm.

Short-Term Profit Decisions Can Cause Firms to Lose Customers in the Long