Research Indicates That Becoming Friends with Your Customers Is Almost

question 2

True/False

Research indicates that becoming friends with your customers is almost always bad for business.

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Definitions:

Marginal Utility

The extra pleasure or benefit gained from consuming an additional unit of a product or service.

Total Utility

The total satisfaction received from consuming a certain amount of a good or service.

Diamond/Water Paradox

A paradox highlighting the contradiction where water, essential for survival, is inexpensive, while diamonds, with little intrinsic utility, are expensive.

Marginal Value

The additional value or benefit derived from consuming or producing one more unit of a good or service.