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      Question

      Which strategic move best increases long-term

      profitability?
      A Aggressive discounting Correct Answer Incorrect Answer
      B Increasing acquisition without retention focus Correct Answer Incorrect Answer
      C Improving customer lifetime value Correct Answer Incorrect Answer
      D Price wars Correct Answer Incorrect Answer
      E Frequent rebranding Correct Answer Incorrect Answer

      Solution

      Higher CLV ensures sustained revenue over time. Why others are incorrect: Discounts reduce margins; Acquisition without retention increases churn; Price wars erode profits; Rebranding does not guarantee profitability. Banking Example: Cross-selling multiple financial products.

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