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Brand-loyal consumers provide an important source of ______ for firms.

a. Revenue
b. Innovation
c. Criticism
d. Diversity

1 Answer

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Final answer:

Brand-loyal consumers primarily provide a consistent source of revenue for firms by purchasing their favorite products regularly and sometimes at premium prices.

Step-by-step explanation:

Brand-loyal consumers are individuals who repeatedly purchase the products of a preferred brand rather than opting for competitor brands. These consumers are valuable to companies because they provide a consistent source of revenue. Their loyalty means that they not only continue to buy, but also often pay premium prices, serve as advocates for the brand, and may influence others to become customers.

Furthermore, brand-loyal consumers can sometimes contribute to innovation by providing feedback and demanding improvements or new features, though this is not their primary contribution to firms. While they may also offer criticism that can be useful for product improvement and generate a type of diversity in the market through their varied needs and preferences, these are again not the main advantages they offer to a company. Therefore, the correct answer to the question is a. Revenue.

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