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:

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Own Price Elasticity

An index that illustrates the reaction of demand for a good to the adjustment in its price.

Price Elasticity of Supply

Price Elasticity of Supply measures how the quantity of a good supplied changes in response to a change in price, indicating how sensitive the supply of the good is to price changes.

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