Attracting and retaining loyal customers is the most important issue for e-tailers because customer loyalty can lower marketing and advertising costs,transaction costs,customer turnover expenses,and failure costs such as warranty claims.

Question

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Customer loyalty can lead to lower marketing and advertising costs since loyal customers are more likely to spread positive word-of-mouth about a company, leading to new customers through referrals. Additionally, loyal customers are generally more likely to make repeat purchases, leading to lower transaction costs and customer turnover expenses. Finally, loyal customers are less likely to return products, leading to lower failure costs such as warranty claims.

Attracting and Retaining Loyal Customers Is the Most Important Issue