Customer defection rates are
A) a reflection of customer loyalty.
B) an indication of a company's ability to satisfy its customers.
C) important to consider because of their potential impact on advertising and marketing costs.
D) an important consideration because of their effect on sales volumes.
E) all of the above.

Question

Quizplus · Accepted Answer

Customer defection rates can be a reflection of customer loyalty, indicating how likely they are to remain with a company or switch to a competitor. It also shows how effectively a company is able to satisfy its customers, which is crucial for maintaining a strong customer base. Additionally, high customer defection rates can have an impact on advertising and marketing costs, as well as sales volumes. Therefore, all of the given options are important to consider.

Customer Defection Rates Are