Customer Lifetime Value Refers to the Total Potential Revenue from Each

question 55

True/False

Customer lifetime value refers to the total potential revenue from each customer over a certain time span minus the cost of attracting and keeping that customer.

Understand the concept of sustainable development and its importance in modern business.

Identify the various forms of social responsibility, including cause marketing and social audits.

Recognize the ethical implications of marketing decisions and consumer behavior.

Explain the difference between ethics and laws within the context of business and marketing.

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Definitions:

Initial Investment

The amount of money used to start a project, purchase an asset, or initiate operations in a business.

Salvage Value

The projected sell-on value of a property when it reaches the end of its operational lifespan.

Internal Rate

Often referred to as Internal Rate of Return (IRR), it is the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Payback Period

The duration required for an investment to produce a sum of money or cash value equal to the investment's cost.