In the Equation to Calculate the Economic Value of a Customer

question 56

Multiple Choice

In the equation to calculate the economic value of a customer, V = R × F × M / D, how is the value for F estimated?

• A) It is estimated to be the total number of purchases the customer has made.
• B) It is estimated to be the number of visits of the customer without actually spending on an item.
• C) It is estimated to be the purchase frequency per year.
• D) It is estimated to be the number of customers defecting per year.

---

Definitions:

Government Spending

Expenditures made by the government for the purchase of goods and services, infrastructure, and transfer payments.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and other liquid assets.

Employment Act of 1946

A landmark US legislation aimed at promoting maximum employment, production, and purchasing power, marking a commitment by the federal government to ensure economic stability.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible.