Decision Making

Decision-making may be viewed as the process of selecting a course of action from among several alternatives in order to accomplish a desired result. The purpose of decision-making is to direct human behaviour and commitment towards a future goal. It involves committing the organisation and its resources to a particular choice of course of action thought to be sufficient and capable of achieving some predetermined objective. According to George R. Terry, Decision-making is the selection based on certain criteria from two or more alternatives.

Customer Retention
irms have realised that they have to build defences against competitors and fluctuating customer loyalty. This can be done by taking into account the likely shifts in areas like customer preferences! competition! distribution channels and media. "aving understood that every consumer is a market! many firms have started building detailed customer database! which includes # information on their personal characteristics! preferences and purchase decisions. $oreover! relational marketing database! containing data on geographic! demographic! and psychographic characteristics of prospects! will help in offering tailor made products and services! make the same known to target customers as well as reach them in a most cost-effective way. %elationship marketing is working towards the concept of &lifetime value of a customer.' This means that if the firm is able to retain a customer over his(her lifetime! it will result in earning a tidy sum for the firm.