In Determining Lifetime Value for Individual Customers, Customer Acquisition Costs

question 168

Multiple Choice

In determining lifetime value for individual customers, customer acquisition costs are determined by dividing:

• A)advertising costs by the number of customer transactions.
• B)total marketing and advertising costs by the number of new customers.
• C)total marketing and advertising costs by the number of total customers.
• D)advertising costs associated with acquiring new customers by the number of new customers.

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Definitions:

Lifestyle

The interests, opinions, behaviors, and behavioral orientations of an individual, group, or culture.

Conspicuous Consumption

The spending of money on and the acquisition of luxury goods and services to display economic power and social status.

Situational Factors

External factors such as time, location, and social context that can influence consumers' buying behaviors or decision-making processes.

Fashion Conscious

A term describing individuals who are highly aware of and responsive to the latest fashion trends and styles.