In relationship marketing, customer retention is important because retained customers generally:
Correct answer: B. Create continuing value for the firm
- A. Require no communication
- B. Create continuing value for the firm
- C. Always pay higher prices
- D. Eliminate the need for promotion
Explanation
Retained customers may purchase repeatedly, provide referrals, and cost less to serve than newly acquired customers. Retention does not mean that communication, pricing decisions, or promotion become unnecessary.
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About Marketing Basics
Marketing begins with identifying customer needs and ends with creating, communicating and delivering value through exchange. Coverage includes market research, consumer behaviour, segmentation, targeting, positioning and the marketing mix of product, price, place and promotion, with marketing distinguished from selling and advertising.
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