Before abandoning a customer who seems unprofitable in the short run, management must keep in mind that:
A) The customer may be a member of a value-based segment.
B) Not all costs assigned to an abandoned customer may be avoided, and revenue could be lost with little or no cost savings.
C) The customer's value proposition may be a poor match to the firm's value creation profile.
D) The customer possesses significant market power.

Question

Quizplus · Accepted Answer

Not all costs assigned to an abandoned customer may be avoided, and revenue could be lost with little or no cost savings, which means the decision to abandon may not be financially beneficial.

Before Abandoning a Customer Who Seems Unprofitable in the Short