The Text Discusses Trends in Strategies Used by Contemporary Relationship

question 54

Multiple Choice

The text discusses trends in strategies used by contemporary relationship marketers and designed to build deeper, more direct and enduring relationships with customers. Which of the following is NOT one of these trends as discussed in the text?

• A) using tecniques to identify and retain the most profitable customers
• B) providing incentives for the least profitable customers to leave the company
• C) providing deep discounts to the most profitable customers
• D) using electronic communications channels to enter into engaging, customised dialogues with customers
• E) reducing the company's dependence on mass media communications such as TV and radio

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Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs, used to cover fixed costs and generate profit.

Break-Even Point

The point at which total costs equal total revenue, meaning the business does not make a profit or loss.

Degree of Operating Leverage

A financial metric that measures the sensitivity of a company's operating income to its sales, indicating the proportion of fixed to variable costs.

Variable Expenses

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor.