Many Catalog Companies Create Special-Run Issues Based on What Customers

question 126

Multiple Choice

Many catalog companies create special-run issues based on what customers have purchased in the past.For example,customers who frequently order bedding items like sheets and pillows receive a catalog with a larger section of bedding items than do customers who mostly order kitchen tools.This is an example of

• A) C2C marketing.
• B) customer relationship management.
• C) a transactional marketing orientation.
• D) supply chain management.
• E) typical production-oriented era marketing practices.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, highlighting the proportion of fixed costs in a company's cost structure.

Contribution Margin

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

Fixed Costs

Expenses that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance.

Contribution Margin Ratio

A financial metric that measures the proportion of revenue that exceeds variable costs, indicating how much of sales revenue is available to cover fixed costs and generate profit.