Question

CRM relies on data collected from customers to create customized or one-to-one

experiences for those customers. Data are collected at various touchpoints-places in
which the customer interfaces with the firm to provide information, such as at a
checkout lane, on the phone, on the website, and so on.
1. Do firms have an obligation to explain to customers that they are collecting
information from them to populate and drive their CRM initiative, or is it inherently
obvious in today's world that such practices are routine?
2. In general, what is your personal viewpoint of database-driven positioning strategies?
3. What are the potential pros and cons to the company and to the customer? Debate
about the pros and cons of database driven positioning strategies. You can discuss the
privacy issues involved and whether it should be legal for companies to collect and sell
your personal information without your knowledge.
4. Is this a desirable marketing activity or an invasion of privacy?
Answer each question (number them please)

Answer 1

Step-by-step explanation:

1. Firms do have an obligation to explain to customers that they are collecting information from them to populate and drive their CRM initiative. Although collecting customer data is common in today's world, it is still important to inform customers about the type of information being collected and how it will be used. This promotes transparency and trust between the company and its customers. Moreover, it helps customers to make informed decisions about what information they are willing to share.

2. Database-driven positioning strategies can be useful for companies to better understand their customers and to create customized experiences for them. However, there is a fine line between collecting useful data and invading privacy. If a company crosses this line, it can negatively impact the customer's trust in the company and ultimately hurt the company's reputation.

3. The potential pros of database-driven positioning strategies are that companies can better understand their customers' preferences and tailor their products or services to meet those preferences. Additionally, customized experiences can lead to increased customer loyalty and higher revenue. However, the potential cons are that customers may feel uncomfortable with the level of data being collected and may question the company's motives. Privacy concerns can also arise, particularly if customer data is shared or sold without the customer's knowledge or consent.

4. The answer to whether database-driven positioning strategies are desirable marketing activities or invasions of privacy depends on how companies collect and use the data. If data is collected transparently and with the customer's consent, it can lead to positive outcomes for both the company and the customer. However, if data is collected without the customer's knowledge or used in ways that are deceptive or harmful to the customer, it can be seen as an invasion of privacy. Therefore, it is important for companies to be transparent about their data collection practices and to prioritize customer privacy and trust.