The Customer Lifetime Value (CLV) Is Equal to the Net

question 91

Multiple Choice

The customer lifetime value (CLV) is equal to the net present value (npv) of the stream of profits over a customer's lifetime, _____.

• A) minus the net expenses associated with satisfying that customer
• B) plus the worth attributed to the equity a good customer can bring in the form of positive referrals
• C) plus the opportunity costs saved from having loyal customers
• D) minus the cost associated with identifying segments of consumers containing valuable customers

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Definitions:

Skilled Workers

Individuals who have special training, education, knowledge, and abilities in their field of work.

Government Price Floor

A minimum price set by the government for certain goods, ensuring producers receive a minimum return regardless of market forces.

Market For Butter

The supply and demand dynamics concerning the sale and purchase of butter.

Surplus

A situation in which the quantity of a good or service supplied exceeds the quantity demanded at the current price.