Final answer:
The move toward a customer-centric approach by firms is driven by the realization that investing in existing customers is more efficient than gaining new customers with unknown returns. Firms aim to establish a good reputation and attract repeat customers who will recommend their business to others.
Step-by-step explanation:
The move toward a customer-centric approach by firms has been driven by the realization that it is far more efficient and effective to invest in keeping and cultivating profitable current customers instead of constantly having to invest in gaining new customers that come with unknown return on investment.
The rationale for these policies is that firms want repeat customers, who in turn will recommend the business to others. As such, establishing a good reputation is of paramount importance. When buyers know that a firm is concerned about its reputation, they are less likely to worry about receiving a poor-quality product. For example, a well-established grocery store with a good reputation can often charge a higher price than a temporary stand at a local farmer's market, where the buyer may never see the seller again.