Relationship Marketing Refers to

question 74

Multiple Choice

Relationship marketing refers to

• A) the selection and the assignment of a firm's personnel for a specific product or product line to a group of current or prospective customers.
• B) the belief that it is easier and less expensive to find new customers than to retain old ones.
• C) the linking of the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits.
• D) the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace.
• E) exclusive legally binding contractual agreements between retailers and customers in order to create enhanced value for each party.

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Definitions:

Inflation Rate

The percentage increase in the general level of prices for goods and services in an economy over a period of time, often measured annually.

Natural Rate

Often referred to as the natural rate of unemployment, it is the level of unemployment consistent with a stable rate of inflation.

Unemployment

Unemployment is the state of being without a job despite actively looking for work, reflecting the portion of the labor force unable to find gainful employment.

Friedman-Phelps Analysis

The Friedman-Phelps analysis introduces the concept of the natural rate of unemployment, arguing that inflation and unemployment rates are not linked in the long term due to adaptive expectations.