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:

Benefit

An advantage or profit gained from something, including direct financial gains or more intangible positive outcomes.

Intrusion

An act of entering into a place or situation where one is unwelcome or not authorized.

Externality

A consequence of an industrial or commercial activity that affects other parties without this being reflected in market prices.

Uncompensated Impact

Uncompensated impact refers to effects borne by parties who are not directly involved in a transaction or activity and are not compensated for their losses.