To Estimate the Lifetime Value of a Customer at a Given

question 34

Multiple Choice

To estimate the lifetime value of a customer at a given rate of customer retention,you need to compute the ________.

• A)net present value of the customer's cash flow
• B)customer satisfaction index
• C)future customer value
• D)customer loyalty index
• E)gross percent margin of the company

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Definitions:

Intrinsic Motives

Internal drives for behavior that come from personal satisfaction or the joy of doing a task, rather than external rewards.

Drive Level

The intensity of an urge or motivation that propels an individual towards a certain behavior to satisfy a need or achieve a goal.

Arousal

Refers to the physiological and psychological state of being awoken or alert, typically involving the activation of certain brain pathways and bodily responses.

Optimal Level

Refers to the most favorable point, degree, or amount of something for a particular purpose or outcome.