Answered: Explain which types of firms are most…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

See similar textbooks

Related questions

Question

Explain which types of firms are most vulnerable and least vulnerable to customer defections.

Expert Solution

Step 1 of 2

Customer Defection refers to the loss in the number of customers a company has. This concept is also known as customer churn, customer attrition or customer turnover. Many industries use the concept of customer defection as a key metric to analyze the attrition rate of their customers.

Companies pay a lot of attention to the concept of customer defection because the cost of retaining a customer is very much less than the cost of acquiring new customers as acquisition of customers involve a lot of expenses in the form of advertisements.

Step by step

Solved in 2 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, marketing and related others by exploring similar questions and additional content below.

Similar questions