Which of the Following Statements Does Not Describe How Retailers

question 51

Multiple Choice

Which of the following statements does not describe how retailers use a customer lifetime value (CLV) ?

• A) CLV is used to identify and cater to the best and more profitable customers.
• B) CLV should be estimated under the assumption that the customer's future purchase behaviors will be the same as they have been in the past.
• C) Sophisticated statistical methods are typically used to estimate the future contributions from past purchases.
• D) An RFM analysis is often used by catalog retailers and direct marketers in estimating their customers' lifetime value.
• E) A customer who spends $800 twice a year has a higher CLV than a customer that spends $100 each month.

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Definitions:

Communication Channels

The mediums through which information is transmitted from one entity to another, including verbal, non-verbal, written, and digital forms.

Organization Chart

A diagram that displays the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.

Scatter Diagram

Chart that plots discrete data points, with one variable along the x (horizontal) axis and another along the y (vertical) axis.

Bubble Diagrams

Visual tools that use bubbles or circles to represent ideas, tasks, or parts of a project, showing relationships and hierarchy.