Which of the following best defines a business relationship?

• A single sale of a product

• One-time customer service interaction

• A contractual agreement

• Ongoing interactions and mutual value

A transactional approach to business focuses primarily on:

• Building long-term customer loyalty.

• Understanding customer needs and preferences.

• Maximizing the value of each individual sale.

• Creating a personalized customer experience.

Why is understanding the concept of customer relationships crucial for CRM strategies?

• It helps businesses reduce marketing costs.

• It allows businesses to personalize their offerings.

• It simplifies the process of data collection.

• It shifts the focus from short-term gains to long-term customer value.

Which of the following scenarios exemplifies building a customer relationship?

• A customer buys a product online through a one-click purchase.

• A company sends out a mass email promoting a new product.

• A sales representative follows up with a customer after a purchase to ensure satisfaction and offer further assistance.

• A customer leaves a positive review on a company's website.

Which factor is NOT a component of relationship quality?

• Trust

• Commitment

• Relationship Quality

• Price competitiveness

Soliciting customer feedback is important for relationship quality because it:

• Helps the company avoid negative reviews.

• Provides data for targeted advertising campaigns.

• Shows customers that their opinions are valued and allows for service improvement.

• Reduces the need for proactive customer service.

Why is excellent technical support a demonstration of high relationship quality?

• It reduces the need for future customer interactions.

• It increases the likelihood of immediate repeat purchases.

• It minimizes the company's support costs.

• It builds trust and demonstrates a commitment to customer success.

A company is most likely to invest in customer relationships when:

• The market is saturated

• The product is a one-time purchase

• They have a low-cost product

• Customer lifetime value is high

Why do luxury car dealerships invest heavily in building relationships?

• They primarily rely on impulse purchases.

• Their products are inexpensive and easily replaceable.

• Repeat purchases and referrals are essential for their business model.

• Customer service is not a significant factor in their industry.

A company with a high customer churn rate should:

• Focus on acquiring as many new customers as possible.

• Reduce customer service efforts to minimize costs.

• Invest in understanding why customers are leaving and improve relationship management.

• Ignore customer feedback and focus on product development.