Question

    If a bank focuses on retaining profitable customers

    while allowing low-value accounts to close, it is applying:
    A Mass marketing Correct Answer Incorrect Answer
    B Selective retention strategy Correct Answer Incorrect Answer
    C Market penetration Correct Answer Incorrect Answer
    D Undifferentiated targeting Correct Answer Incorrect Answer
    E Production concept Correct Answer Incorrect Answer

    Solution

    Selective retention prioritizes high Customer Lifetime Value (CLV) customers for retention efforts.  Why Other Options Are Incorrect • A, D: No segmentation focus. • C: Growth strategy. • E: Production orientation.  Banking Example: Dedicated managers for high net-worth individuals only.

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