Question

One of the major challenges facing companies today is to keep the customers they already have since there are fewer customers to go around. Changing demographics, sophisticated competitors, and overcapacity in many industries are some of the reasons for this. As a result:_________
a. the costs of maintaining existing customers are declining.
b. the costs of attracting new customers are declining.
c. the cost of giving incentives to existing customers all the time is low.
d. the costs of attracting new customers are rising.

Answer 1

Answer: d. the costs of attracting new customers are rising.

Explanation:

Due to the fact that companies always want to keep their old customers and ensure customer loyalty, they try as much as possible to satisfy them and meet their needs.

Due to this reason, the cost of attracting new customers are high. Companies go through a lot of processes to get new customers such as promotion, advertisement to attract new customers etc. The cost involved are typically high.