Every time Tom buys a litre of milk he gets a stamp,which he sticks on a card he carries in his wallet.When he has 10 stamps,he gets a free litre of milk.This sort of program to encourage repeat business exemplifies which of the following?
A) a developing strategic alliance
B) customer maximization
C) relationship management
D) profit maximization

Question

Quizplus · Accepted Answer

The program described in the scenario is an example of relationship management, which involves creating and maintaining long-term relationships with customers. The goal is to foster loyalty and encourage repeat business, which is exactly what the milk program is trying to do by offering a reward for frequent purchases. This approach is different from other strategies like profit maximization, which prioritize short-term gains over customer loyalty, and developing strategic alliances, which typically involve partnerships between companies rather than individual customers. While the milk program could be considered a form of customer maximization, this term is not commonly used in business and doesn't accurately capture the focus on building relationships.

Every Time Tom Buys a Litre of Milk He Gets