Customer defection rates are:
A)not directly related to unit cost.
B)an indication of a company's ability to satisfy its customers.
C)irrelevant as they are unlikely to impact advertising and marketing costs.
D)unlikely to affect sales volumes.
E)not affected by cost of products.

Question

Customer defection rates are:
A)not directly related to unit cost.
B)an indication of a company's ability to satisfy its customers.
C)irrelevant as they are unlikely to impact advertising and marketing costs.
D)unlikely to affect sales volumes. 
E)not affected by cost of products.

Quizplus · Accepted Answer

Customer defection rates are a measure of how many customers are leaving a company for its competitors. This is a clear indication of a company's ability to satisfy its customers. If the defection rate is high, it means that customers are not happy with the product or service provided, and this can lead to a negative impact on the company's reputation and sales. Therefore, companies must strive to keep their defection rates as low as possible to retain customers and ensure their satisfaction.

Customer Defection Rates Are