Question

Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________.
Select one:
a. partner relationship management
b. customer-perceived value
c. customer lifetime value
d. customer relationship management
e. customer equity

Answer 1

Answer is D - Customer Relationship Management.

Finding customers for its products or services is an essential requirement for any business. Customers are attracted to a business, in need or in response to advertisement and sales promotion activities, discounts or publicity orthrough recommendations from fellow customers. Also variety of costs are incurred by businesses to acquire customers.

Retaining these customers foor long time with tthe business is another challenge. If the service quality or value perceived by the customer is low, The customer will not stay with the business. Moreover, acquiring new customer is more expensive thaan keeping the existing customer.

If the business is able to deliver superior customer value and satisfaction, the custoomer will probabley stay with the business and may be willing to pay more price. Business's revenues are assured and profitable with profitable relationships and customers get superior value and it is also mutually beneficial. It is essential for any business to keep profitable relationships wth customers by proviidng superior valu and satisfaction & the process is called Customer Relationship Management.