To Calculate Lifetime Value, a Company Would Estimate the Amount

question 13

True/False

To calculate lifetime value, a company would estimate the amount of money a person would spend with the company over a lifetime and then subtract what it will cost the company to maintain this relationship.

---

Definitions:

Complementary Goods

Goods that are often used together so that the consumption of one increases the demand for the other.

Cross-Price Elasticity

A gauge of the demand shift for one item in response to price adjustments of another item.

Cross-Price Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good, indicating the degree of substitutability or complementarity between them.

Substitutes

Products or services that can replace or serve as alternatives to another, often influencing consumer choices and market competition.