The customer relationship management process includes customer segmentation by value and subsequent generation of customer loyalty for the most attractive segments

Indicate whether the statement is true or false
a. True
b. False

ANSWER: True

The customer relationship management (CRM) process includes customer segmentation by value and subsequent generation of customer loyalty for the most attractive segments. This process provides a set of comprehensive principles for the initiation and maintenance of customer relationships and is often carried out with the assistance of specialized CRM computer software.

Business

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A firm uses $20,000 of an item per year. The carrying cost is 25%, the cost of ordering is $10 and the

order quantity is $1,000. The annual total cost of carrying plus ordering would be: A) $500. B) $816. C) $5,000. D) $2,500. E) none of the above

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