Which of the following statements concerning customer defection rates is incorrect?
A) Defection rates are determined by customer loyalty.
B) The longer a company holds on to a customer, the volume of customer-generated unit sales is greater and the average cost of each sale is lower.
C) Lowering customer defection rates allows a company to achieve a lower cost structure.
D) R&D should address the issue of customer loyalty in product development.
E) There is a positive relationship between length of time that a customer stays with the company and profit per customer.

Question

Quizplus · Accepted Answer

R&D (Research and Development) primarily focuses on developing new products and improving existing ones. While customer loyalty is important, it is not directly the responsibility of R&D to address customer loyalty in product development. Customer loyalty is typically addressed through marketing strategies, customer service, and overall product quality, which can be influenced by R&D but are not its direct concern.

Which of the Following Statements Concerning Customer Defection Rates Is