ITPEC IP April 2020 Question 82

Source exam: ITPEC IP April 2020Topic: Business Strategy Management

ITPEC IP April 2020 — Question 82 of 100

CRM is based on creating and maintaining good relationships with customers so that their long-term value becomes a source of profit. Customer information is shared and used to improve acquisition, satisfaction, retention, and repeat business.

Answer (b)

Why not others:
- entering an uncontested area early is a competitive-position strategy

- shortening a product life cycle concerns product development and turnover

- obtaining a large market share is a market-position objective, not CRM's underlying concept

Key rule: CRM manages customer relationships across their life cycle to improve satisfaction and long-term profitability.

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