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

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Definitions:

Models of Abnormality

Theories and frameworks used to understand the causes, symptoms, and treatments of psychological disorders, including biological, psychological, and sociocultural models.

Laboratory Testing

The analysis of blood, urine, or other body fluids or tissues in a controlled environment to diagnose, prevent, or treat diseases.

Psychodynamic

An approach in psychology that emphasizes systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experiences.

Cognitive-behavioral

Relating to cognitive-behavioral therapy (CBT), a type of psychotherapy that involves modifying dysfunctional emotions, behaviors, and thoughts through a goal-oriented, systematic approach.