Statements : I. Most of the big companies do not maintain their own marketing research departments and…
Statement II is correct and Statement I is incorrect. Under customer profitability analysis, persistently unprofitable customers who defect to a competitor can be encouraged…
Choose your answer
Statements :
I. Most of the big companies do not maintain their own marketing research departments and instead outsource their marketing research activities.
II. Unprofitable customers who defect to a competitor should be encouraged to do so.
Answer and explanation
Correct answer D
Statement II is correct and Statement I is incorrect. Under customer profitability analysis, persistently unprofitable customers who defect to a competitor can be encouraged to do so because serving them costs more than the revenue they generate. Most large companies maintain their own internal marketing research departments alongside using external research firms, rather than lacking in-house departments.
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Karnataka SET (KSET)