Using Advances in Technology to Maintain Databases of Customer Information

question 159

True/False

Using advances in technology to maintain databases of customer information is more important for firms involved in mass marketing than it is for those firms using relationship marketing.
Mass marketing tries to develop products that appeal to large groups of consumers without customizing them.Thus the individual preferences of consumers are not critical to firms using mass marketing.However,in relationship marketing the goal is to retain customers over time by offering products that are customized to precisely meet their needs.This requires the firm to know more about individual customers.Hence,maintaining a database of customer information is critical to the relationship marketing approach.

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Definitions:

Price Changes

Variations in the cost of goods and services over time, affecting consumer behavior and economic trends.

Hyperinflation

An extremely high and typically accelerating inflation rate, often resulting in the quick erosion of the real value of the local currency.

Inflation

The tempo at which prices for general goods and services ascend, leading to a depreciation in money's buying strength.

Government

The organization or system through which a society or community is ruled, often responsible for creating and enforcing laws, policies, and regulations.