Small Reductions in Customer Defections Produce Significant Increases in Profits

Multiple Choice

Small reductions in customer defections produce significant increases in profits for all of the following reasons EXCEPT ________.

A) loyal customers buy more products
B) loyal customers pay less attention to competitors' advertising
C) loyal customers are more price sensitive
D) loyal customers spread positive word-of-mouth and refer other customers
E) it is more expensive to secure new customers than to keep existing ones