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Discuss the Role of Value in Developing Long-Term Customer Relationships

question 9

Essay

Discuss the role of value in developing long-term customer relationships. In your discussion, explain the value formula and its component parts. How can the value formula help marketers design strategies to optimize customer value?


Definitions:

Common Cost

A cost that is not directly attributable to any particular cost object, such as a product, department, or project.

Business Unit

A segment of a company with its distinct operations and management, often treated as an individual entity within the larger corporation for strategic and operational planning.

Avoidable

Something described as avoidable can be prevented or not incurred if certain actions are taken or certain conditions are met.

Performance Report

A document that compares actual results to planned or expected results in areas such as budgeting, operations, and project management.

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