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      Question

      Which factor most directly reduces customer acquisition

      cost?
      A Increasing advertising budget Correct Answer Incorrect Answer
      B Improving referral programs Correct Answer Incorrect Answer
      C Reducing service quality Correct Answer Incorrect Answer
      D Expanding branch infrastructure Correct Answer Incorrect Answer
      E Raising interest rates Correct Answer Incorrect Answer

      Solution

      Referral programs use existing customers to bring new ones, reducing marketing cost per acquisition. Why Other Options Are Incorrect β€’ A: Increases cost. β€’ C: Damages brand. β€’ D: High capital cost. β€’ E: May discourage customers. Banking Example: Refer-and-earn savings account campaigns.

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