Lifetime Value Can Be Calculated in Two Ways

question 131

True/False

Lifetime value can be calculated in two ways. Most marketing experts believe the most accurate method is calculating the lifetime value of a single customer.

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Definitions:

Promotions

Marketing strategies aimed at increasing customer awareness, sales, and interest in a product or service.

Complementary Products

Products that are used together or enhance the value or experience of each other, leading to increased demand when sold together.

Marked Down

Refers to products that have their prices reduced, usually to encourage quick sales or clear out inventory.

Demand Increase

A rise in the quantity of a product or service that consumers are willing and able to purchase at a given price over a certain period of time.