Which of the Following Is False with Regard to Customer

question 61

Multiple Choice

Which of the following is false with regard to customer lifetime value?

• A)It is a key measurement that forecasts a customer's lifetime economic contribution based on continued relationship marketing efforts.
• B)It can be calculated by taking the sum of the customer's present value contributions to profit margins over a specific time frame.
• C)It includes not only an individual's propensity to engage in purchases but also his or her strong word-of-mouth communication about the firm's products.
• D)All customers have equal value to a firm.
• E)It is the only gauge that incorporates revenue, expense and customer behaviour, and adopts a customer-centric approach.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded by consumers, typically sloping downward from left to right.

Sales Price

The amount of money for which a product or service is sold to the customer.

Quantity Sold

The total number of units of a product or service sold during a specific period.

Market Forces

Natural economic factors that influence supply, demand, and prices within a marketplace, shaping business dynamics.