What Is the Main Benefit Companies Attain by Accurately Calculating

question 61

Multiple Choice

What is the main benefit companies attain by accurately calculating a customer's CLV?

• A)The company can build a model of the customer's lifestyle,which allows them to predict how the customer will react to various sales approaches.
• B)The company can save time by eliminating customers from their databases that are not expected to make many purchases in the future.
• C)The company may realign human capital by sending certain salespeople to service accounts they have not previously met with but that have characteristics that the salesperson has experience with.
• D)The company may back out of price wars with other vendors if the customer's CLV does not indicate that they will make enough money from that customer over the long term.
• E)The company may sell the customer's demographic information to competitors or to companies in allied industries.

---

Definitions:

Employee Empowerment

The practice of giving employees the autonomy, resources, and capabilities to make decisions and contribute to the company's success.

Centralized Decision Making

A decision-making process where major decisions are made by a small group of people or a single person at the top of the organizational hierarchy.

Self Ownership

The concept that individuals own themselves and have autonomy over their own actions, choices, and bodies.

High Power Distance

A cultural dimension that describes a society’s acceptance of unequal distribution of power among its members, where hierarchy is emphasized.