Which of the Following Statements About the Lifetime Value of a Customer

question 23

Multiple Choice

Which of the following statements about the lifetime value of a customer is true?

• A) CRM helps companies identify their customers' lifetime value.
• B) All customers have the same lifetime value.
• C) A customer's lifetime value is easy to calculate.
• D) A company can either increase customer share or a customer's lifetime value, but not both.
• E) Lifetime value of a customer does not account for the marketing costs of establishing and maintaining a relationship with the customer.

---

Definitions:

Taxi Company

A business that provides public transportation services using cars, typically based on a metered fare system.

Response Times

The amount of time taken to react to a stimulus or to answer a question in a testing scenario.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean, indicating how spread out the values are.

High Blood Pressure

A condition where the force of the blood against the artery walls is too high, often leading to health risks.