ITPEC IP October 2024 Question 84
ITPEC IP October 2024 — Question 84 of 100
CRM is based on the idea that strong, continuing customer relationships are a source of profit. Customer Relationship Management collects and uses information across sales, marketing, and service interactions to understand needs, improve satisfaction, retain valuable customers, and develop lifetime value. The focus is not merely a single sale but a mutually valuable relationship over time.
Answer (b)
Why not others:
- (a) describes a first-mover or early-entry advantage
- (c) a shorter product life cycle is a market condition or challenge, not CRM's profit concept
- (d) a large share in a narrowly defined market concerns market concentration or niche leadership
Key rule: CRM treats customer knowledge, satisfaction, retention, and long-term value as strategic assets.
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