To receive credit for this exercise, create a new journal entry and answer the following questions.
of the common uses of customer relationship management (CRM) in
consumer markets is to rank customers on profitability or lifetime value
measures. Highly profitable customers get special attention, while
unprofitable customers get poor service or are often “fired.” What are
the ethical and social issues involved in these practices? Could CRM be
misused? How and why?
- Think about all of the organizations with
which you maintain an ongoing relationship (banks, doctors, schools,
accountants, mechanics, etc.). Would you consider yourself to be
unprofitable for any of these organizations? Why? How might each of
these organizations fire you as a customer? What would you do if they
- Given the commoditized nature of many markets today, does
customer relationship management—and its associated focus on quality,
value, and satisfaction—make sense? If price is the only true means of
differentiation in a commoditized market, why should a firm care about