Which of the Following Best Describes a Lifetime Customer Value

question 31

Multiple Choice

Which of the following best describes a lifetime customer value (LTV) ?

• A) LTV is an assessment of how many valued customers shop with a retailer
• B) LTV is the value placed upon a retailer by a consumer
• C) LTV is what retailers use to rate the value of guaranteed merchandise
• D) LTV is a numerical value of how much a "best customer" shops
• E) LTV is what a customer contributes to a retailer's profits over her lifetime

---

Definitions:

Financial Ratios

Financial ratios are quantitative measures derived from financial statement analysis to evaluate the financial performance, condition, and valuation of a company.

Loan Decision

The process undertaken by lenders to determine whether to make funds available to borrowers under certain terms.

Analytical Tool

Instruments or methodologies used to analyze or interpret data to make decisions or solve problems.

Benchmark Comparison

The process of comparing business metrics or performance against a standard or set of best practices to evaluate relative performance.