A Comparison of the Marketing Concept and Customer Relationship Management

question 249

Multiple Choice

A comparison of the marketing concept and customer relationship management indicates that customer relationship management

• A) and the marketing concept are in fact identical.
• B) attempts to improve profits by keeping quality high, while the marketing concept attempts to improve profits by a careful design of the promotional mix.
• C) turns the marketing concept upside down. The marketing concept emphasized that marketing was the most important function performed by a firm, but customer relationship management views management to be the most important function.
• D) extends the marketing concept by calling for the firm to learn more about its customers so that it not only satisfies them, but exceeds their expectations over time.

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Definitions:

Price

The amount of money required to purchase a good or service, usually determined by supply and demand in the market.

Marginal Rates Of Substitution

The rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility or satisfaction.

Equilibrium

A state in an economic model where demand equals supply, meaning there is no incentive for change in the market situation.

Marginal Rates Of Transformation

The rate at which one good has to be sacrificed to produce an additional unit of another good, holding technology constant.