A Customer's Lifetime Value Is Calculated By

question 12

Multiple Choice

A customer's lifetime value is calculated by:

• A) Summing the projected annual profitability of the customer
• B) Summing the annual sales of the customer and then dividing by the projected lifetime
• C) The firm's MRP system
• D) Finding the NPV of a customer's projected lifetime profits for the firm

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Definitions:

Nomadic Existence

A lifestyle characterized by moving from one place to another rather than settling permanently in one location, often for reasons such as seasonal resource availability.

Good Harvest

A particularly productive yield of agricultural produce.

Theocratic

Pertaining to a form of government in which a deity is recognized as the supreme civil ruler, with the deity's laws being interpreted by ecclesiastical authorities.

Hierarchical

Describes a system or organization where individuals or elements are ranked one above the other according to status or authority, often found in corporate, military, and social structures.