A Firm That Uses Data to Compare the Costs of Retaining

question 44

Multiple Choice

A firm that uses data to compare the costs of retaining customers and the costs of acquiring new customers with the goal of determining how much money each type of customer requires is using

• A)demographic value analysis.
• B)customer segmentation analysis.
• C)recency-frequency-monetary analysis.
• D)lifetime value analysis.
• E)predictive modeling.

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Definitions:

Accord and Satisfaction

A legal contract wherein a dispute is settled by the parties involved agreeing to provide and accept something different than originally owed.

Doctrine of Promissory Estoppel

A legal principle preventing a party from withdrawing a promise made when the other party has reasonably relied on that promise to their detriment.

Preexisting Duty Rule

A legal principle stating that an existing obligation in a contract cannot serve as consideration for a new contract or for modifying the existing contract.

Unforeseen Circumstances

Events or situations that could not have been predicted or expected and may affect the ability to fulfill obligations.