The Net Present Value of the Customer Relates To

question 74

Multiple Choice

The net present value of the customer relates to:

• A)the cost to keep the customer minus the cost to replace the customer.
• B)the profit gained from the customer minus the cost to keep the customer.
• C)the total profits gained from the customer discounted over time.
• D)the revenue gained from the customer after deducting rebates.

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Definitions:

Economic Approach

A method or strategy that focuses on the principles of economics to explain how people make choices under conditions of scarcity and the implications of these decisions.

Participative Leadership

A leadership style that involves employees in decision-making processes, fostering a sense of ownership and empowerment among team members.

Top-Down Leadership

A leadership approach where decisions and directives originate from the higher levels of an organization's hierarchy and flow down to the lower levels.

Political Support

Backing or endorsement from political entities or figures, often used to gain leverage or influence.