Successful Customer Relationship Management Systems Reduce Costs by Empowering Customers

question 217

True/False

Successful customer relationship management systems reduce costs by empowering customers to find the information they need to manage their own orders.

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Definitions:

Diseconomies of Scale

The phenomenon where, as a firm or production process increases in size beyond a certain point, the cost per unit increases, leading to reduced efficiency.

Production Volume

The total quantity of products manufactured within a specific period, indicating the level of output.

Economies of Scale

The cost advantage achieved when production becomes efficient, as fixed costs are spread over more units of output.

Advertising Dollars

The amount of funding allocated to promotional activities in order to increase product or service visibility.