A Company Uses Lifetime Value to Segment Their Customers into Five

question 110

Multiple Choice

A company uses lifetime value to segment their customers into five different segments.The marketing approach that should be used for the top segment,which has the highest lifetime value,is:

• A) offer them price incentives that will increase their purchase level
• B) reward them for their patronage
• C) reward them for their patronage and encourage them to spend more money with the firm
• D) encourage them to increase their purchase level so they can move up to the next highest group

---

Definitions:

Contracted-for Shipment

An agreement to transport goods to a specified location under the terms of a contract.

Letter of Credit

A financial document issued by a bank guaranteeing a buyer's payment to a seller within a specified timeframe, providing security in international trade.

International Sale of Goods

Transactions involving the sale of goods between parties residing in different countries.

Finance Corporation

An organization, typically a company, devoted to managing, investing, or lending money to individuals or other companies.