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:

Secondary Voltage

A voltage that is output by the secondary winding of a transformer.

Primary Voltage

The initial voltage level supplied to a transformer or another primary component in a circuit.

Magnetically Operated

Describes devices or mechanisms that are controlled or actuated through magnetic force or fields, often found in relays and circuit breakers.

Impedance

The combined effect of resistance, inductance, and capacitance on alternating current, expressed in ohms, which inhibits the flow of electricity in a circuit.