Customer defection rates are:
A) not directly related to unit cost.
B) an indication of a company's ability to satisfy its customers.
C) irrelevant as they are unlikely to impact advertising and marketing costs.
D) unlikely to affect sales volumes.
E) not affected by cost of products.

Question

Quizplus · Accepted Answer

Customer defection rates are the percentage of customers who choose to switch to a competitor or discontinue using a company's products or services. High defection rates indicate that the company is not able to satisfy its customers and may lead to a loss in revenue. Therefore, customer defection rates are an important indicator of a company's ability to satisfy its customers.

Customer Defection Rates Are