What situations are not conducive to database marketing?
What will be an ideal response?
Building a customer database may not be worthwhile when:
• the product is a once-in-a-lifetime purchase (a grand piano)
• customers show little loyalty to a brand (there is a lot of customer churn)
• the unit sale is very small (a candy bar) so customer lifetime value is low
• the cost of gathering information is too high
• there is no direct contact between the seller and ultimate buyer
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The matching principle
a. requires that all credit losses be recorded when an individual customer cannot pay. b. necessitates the recording of an estimated amount for bad debts. c. results in the recording of a known amount for bad debt losses. d. is not involved in the decision of when to expense a credit loss.
Calculate the book value of the existing asset being replaced. (See Table 11.4)
What will be an ideal response?