Recently Marketers Have Come to Realize the Value of Relationship

question 18

Multiple Choice

Recently marketers have come to realize the value of relationship marketing. In marketing terms, "relationship marketing" means:

• A) developing friendships with foreign governments so that American products can be sold in their countries at a fair price.
• B) instituting practices that show companies' awareness of their responsibilities to the environment and society.
• C) building bonds between brands and customers that will last over time.
• D) using new electronic capabilities to ensure that all channel members work smoothly together, for example, in seeing that products get to retailers before retailers' inventories run out.

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Definitions:

Present Value

The contemporary valuation of foreseeable future earnings or sequences of cash payments, taking into account a specified interest rate.

Net Present Value Method

A method of evaluating the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Rate Of Return

A financial ratio used to calculate the gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Useful Life

The estimated duration an asset is expected to be functional and economically useful for its intended purpose.