Which of the following is true of unprofitable customers?
A) They produce a referral value that is over three times their customer lifetime value.
B) They are loyal customers in waiting.
C) They buy a lot from many companies and do not have a strong preference for one over the other.
D) They have a low desire to repurchase but are unable to move easily to another company's product.
E) They are a result of mismanaged customer selection.
E
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In a well-established market, ComBuilt produces the nation's best-selling bookkeeping software. The program is far superior to all other similar programs. ComBuilt requires all its distributors and retailers to sell the program at a specified price. This is:
a. known as a price maintenance agreement and may violate Section 1 of the Sherman Act under the rule of reason test. b. known as a price maintenance agreement and is a per se violation of Section 1 of the Sherman Act. c. exempt from antitrust laws because it does not constitute an interference with competition. d. allowed by antitrust laws because it is a superior product.
Describe why the Tylenol tampering case is relevant to an understanding of consumer purchase decision-making
What will be an ideal response?