Sophisticated firms have learned the marketing lesson that
A)it is a lot easier to find new customers than to keep existing ones.
B)the buying experience, customer satisfaction, and retention can increase firm profits.
C)it is not clear whether it is easier to find new customers or to keep existing ones.
D)existing customers do not usually spend as much as new customers since the initial novelty of the product declines over time.
E)unless a marketing promotion to retain customer loyalty can increase market share by at least 5% it is not worth the expenditure.

Question

Quizplus · Accepted Answer

Sophisticated firms understand that retaining existing customers through a positive buying experience, customer satisfaction, and loyalty programs can lead to increased profits. It is not necessarily easier to find new customers than to keep existing ones, and customer retention can be crucial for long-term success.

Sophisticated Firms Have Learned the Marketing Lesson That