Final answer:
Customer relationship management aims to build long-term relationships with customers to encourage repeat purchases and recommendations. A good reputation and money-back guarantees are strategies used by businesses to foster trust and customer loyalty.
Step-by-step explanation:
The goal of customer relationship management (CRM) is to motivate customers to purchase again by developing long-term relationships. Firms prioritize getting repeat customers because they are also more likely to recommend the business to others. A good reputation lessens concerns of buyers about receiving poor-quality products. This is why a well-established grocery store with a solid reputation could command higher prices than a temporary farmer’s market stand.
Another strategy to encourage customer loyalty is offering a money-back guarantee, which assures customers of product quality. This is crucial for companies that sell through mail-order catalogs or online, where the physical product can't be evaluated by the customer prior to purchase.