A Company Sells a Subscription Service for Mowing Lawns

question 119

Multiple Choice

A company sells a subscription service for mowing lawns.Customers typically remain subscribed for 3 years, and they pay $20.00 per month for the service, which means $240.00 ($20.00 *12 months) per year or $720.00 ($240.00 *3 years) potential revenue from the customer.In this case, the $720.00 of potential revenue is the:

• A)differentiated segmentation value.
• B)undifferentiated segmentation value.
• C)perceptual mapping value.
• D)ideal point value.
• E)customer lifetime value.

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Definitions:

Process Variables

Variables that are measured, monitored, or controlled during a process to ensure optimal quality or performance.

Sample Means

The average value of a set of sample data, used to estimate the population mean.

Standard Deviation

An index of how much individual observations of a dataset vary from the dataset's mean.

Lower Control Limit

The lowest boundary of acceptable performance in a statistical quality control chart, below which a process is considered out of control.