Customer relationship management systems collect the data that can be mined to discover the next product line extension that consumers covet. False/ true?

The correct answer is True.

Explanation:

CRM (Customer Relationship Management) is an information industry term that applies to methodologies, software and, in general, to the Internet capabilities that help a company to manage relationships with its customers from one organized way. For example, a company could create a customer database that described relationships in enough detail so that management, sales agents, service workers, and perhaps customers, could directly access such information, respond to customer needs with product plans and offers, reminding customers of different service needs, knowing what other products a customer has purchased, and so on.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.