The _____ of a Customer Is the Increased Value or Profit

question 46

Multiple Choice

The _____ of a customer is the increased value or profit that accrues for each additional customer who remains loyal to a company rather than defecting to the competition.

• A) Lifetime value
• B) Attractiveness index
• C) Profit performance quotient
• D) Relationship benefit
• E) Loyalty factor

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Definitions:

Segment Margin

The amount of profit or loss generated by an individual segment of a business after deducting direct and traceable costs.

Net Operating Income

The income yielded by a company's primary activities, not including costs or earnings from activities outside its main operations.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost.

Operating Results

The outcome of a company's core business activities, including revenue generation and expenses, over a specific period.