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      Question

      Which factor most increases customer lifetime

      value?
      A Frequent promotional discounts Correct Answer Incorrect Answer
      B Long-term relationship management Correct Answer Incorrect Answer
      C High churn rate Correct Answer Incorrect Answer
      D Price wars Correct Answer Incorrect Answer
      E Reduced service quality Correct Answer Incorrect Answer

      Solution

      Relationship marketing increases retention and cross-selling. Why others are incorrect: Discounts reduce margins; Churn lowers CLV; Price wars hurt profits; Poor service reduces loyalty. Banking Example: Dedicated relationship manager for premium clients.

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