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    Question

    A high cost per acquisition combined with low CLV

    indicates:
    A Efficient marketing Correct Answer Incorrect Answer
    B Unsustainable customer strategy Correct Answer Incorrect Answer
    C Strong retention Correct Answer Incorrect Answer
    D High differentiation Correct Answer Incorrect Answer
    E Market leadership Correct Answer Incorrect Answer

    Solution

    If acquisition cost exceeds long-term profit, strategy is financially weak. Why others are incorrect: Efficient marketing would show lower cost; Strong retention increases CLV; Differentiation and leadership unrelated directly. Banking Example: Spending ₹5,000 to acquire customer generating ₹2,000 lifetime profit.

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