Final answer:
Keeping long-term customers is more beneficial than continually acquiring new customers for various reasons: lower acquisition costs, higher likelihood of referrals, and the tendency for loyal customers to pay full price. The correct answer is d. All of the above.
Step-by-step explanation:
Keeping long-term customers is indeed more beneficial than continually acquiring new customers for several reasons. Acquiring new customers often costs more than retaining existing ones due to the marketing and sales efforts required. Furthermore, loyal customers are likely to provide referrals, bringing in new business through trusted recommendations without the company incurring additional advertising expenses. Additionally, long-term customers are often willing to pay full price because they value the relationship and trust the quality of the product or service, rather than seeking discounts. This is exemplified in scenarios where a reputable grocery store can maintain higher pricing compared to a temporary market stand, due in part to the established trust and reputation the store holds with its customers.
Therefore, answer d. All of the above is correct: maintaining long-term customers is beneficial because it is cost-effective in terms of acquisition, generates referrals, and secures full pricing through established trust and reputation.