Repeat business is important because:

Question

BlackTom AI · Accepted Answer

The question asks about why repeat business is important.
Option 1: 'Keeping existing customers costs less than finding new ones' is a common principle in marketing and customer relationship management. Retaining customers often reduces acquisition costs, leverages established trust, and can lead to repeat purchases, referrals, and higher lifetime value.
Option 2: 'It is easier to lose old customers' is not a justification for repeat business; it states a negative outcome rather than the positive value of retaining customers. It conflicts with the idea that repeat business is desirable because retention is typically easier than starting anew.
Option 3: 'Loyal customers never complain' is incorrect because loyal customers can still provide feedback and complaints. Loyalty does not imply absence of criticism; addressing concerns is part of maintaining repeat business.
Option 4: 'New customers are always cheaper' contradicts common business understanding. While sometimes initial costs vary, acquiring new customers generally involves higher costs (marketing, onboarding) compared to selling to existing customers, making this claim false in most scenarios.
Overall, option 1 aligns with established reasoning about repeat business by emphasizing cost efficiency and value from existing customers, while the other options describe misconceptions or negatives that do not support the importance of repeat business.

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Repeat business is important because:

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GBUS*4330*W01 25 Fall GBUS 4330 Final Exam - Requires Respondus LockDown Browser

Repeat business is important because:

View Explanation

Log in for full answers

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GBUS4330W01 25 Fall GBUS 4330 Final Exam - Requires Respondus LockDown Browser