Loss-causing customers:
A)should be dropped
B)should be evaluated for ways to become profitable customers
C)should be retained because each customer adds to long-run profitability
D)do not exist because additional customer sales always increase profits

Question

Quizplus · Accepted Answer

Simply dropping a customer who is causing loss may result in lost potential profits. It is important to evaluate why the customer is causing a loss and if there is potential to turn them into a profitable customer through different marketing strategies or cost-cutting measures. However, it is also important to continuously assess the cost-benefit analysis of retaining a loss-causing customer in the long run.

Loss-Causing Customers