When Companies Calculate the Lifetime Value of a Customer They

question 10

Multiple Choice

When companies calculate the lifetime value of a customer they look at ________.

• A) how much profit they expect to make from a particular customer, including each and every purchase she will make from them now and in the future
• B) the positive word of mouth about the product that the customer can spread among her family, friends, and acquaintances
• C) the lifetime expectancy of the product the customer purchased
• D) the age of the customer to see whether she is likely to live long enough to utilize the product being sold
• E) the career path of the customer to see if she may move to a different geographic area and no longer purchase from the company

---

Definitions:

Ward System

A system of electoral division or administrative unit, used in some cities for elections or organizational purposes.

At Large

A term used to describe a method of representation where officials are elected to serve the whole jurisdiction rather than a specific district within the jurisdiction.

Primaries

Preliminary elections in which members of a political party vote to choose their party's candidate for a major upcoming election.

Term Limits

Restrictions on the number of terms an officeholder may serve in a particular elected position.