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.

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Definitions:

Benefits

Advantages or positive outcomes gained from actions, policies, or products.

Sexually Transmitted Infection

An infection transmitted through sexual contact, caused by bacteria, viruses, or parasites.

Gonorrhea

A sexually transmitted infection caused by the Neisseria gonorrhoeae bacterium, which affects mucous membranes, including the reproductive tract.

HIV

Human Immunodeficiency Virus, a virus that attacks the immune system and can lead to AIDS if not treated.