With regard to customer defection, which of the following statements is incorrect?
A) Defection rates are determined by customer loyalty.
B) The longer a company holds on to a customer, the greater is the volume of customer-generated unit sales.
C) Lowering customer defection rates creates a higher cost structure.
D) The longer a company retains a customer the higher the average unit cost of each sale.
E) There is a positive relationship between the length of time that a customer stays with the company and profit per customer.

Question

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The Answer of With regard to customer defection, which of the following statements is incorrect?
A) Defection rates are determined by customer loyalty.
B) The longer a company holds on to a customer, the greater is the volume of customer-generated unit sales.
C) Lowering customer defection rates creates a higher cost structure.
D) The longer a company retains a customer the higher the average unit cost of each sale.
E) There is a positive relationship between the length of time that a customer stays with the company and profit per customer.

With Regard to Customer Defection, Which of the Following Statements