What Do Lifetime-Value-Of-A-Customer and Payback Calculations Recognize

question 134

Multiple Choice

What do lifetime-value-of-a-customer and payback calculations recognize?

• A) that customers will always be there, regardless of the industry or product
• B) that customer complaints have little relevance to how people actually behave
• C) that long-term customers are usually more valuable than new ones
• D) that customer satisfaction is not the determinant of how loyal the customer will be

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Definitions:

Focus

A point used in the definitions of conic sections, such as ellipses and hyperbolas, from which distances are measured to define the curves.

Vertex

The point where two lines, or edges, of a geometric figure meet; in the context of a parabola, the peak or the lowest point, depending on its orientation.

Circle

A round plane figure, every point of which is equidistant from a fixed center point, defined by the equation (x-h)^2 + (y-k)^2 = r^2 in a coordinate plane.

Radius

The distance from the center of a circle to any point on its circumference.