In the Context of Relationship Marketing, Which of the Following

question 88

Multiple Choice

In the context of relationship marketing, which of the following statements is true of customer relationships?

• A) It is more important for an organization to acquire new customers than keep its existing customer base happy.
• B) It is generally less expensive to acquire a new customer than to sustain a current one.
• C) Investment in customer experience does not result in increased referral rates.
• D) Post-sale service behaviors have minimal impact on the quality of a buyer-seller relationship.
• E) It takes only a slight decline in attention from a salesperson to lead a buyer to consider alternative suppliers.

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Definitions:

Efficiency Variance

The difference between the actual amount of input (time, materials, etc.) used in production and the standard amount expected to be used.

Direct Labor-Hours

The sum of the hours spent by workers directly manufacturing a product.

Variable Overhead

Indirect production costs that fluctuate with the level of output, such as utilities or materials used in the manufacturing process.

Efficiency Variance

A measure used in cost accounting to evaluate the efficiency of resource usage, calculated as the difference between actual usage and the standard or expected usage.