The Difference Between Customer Lifetime Value and Customer Equity Is

question 84

Multiple Choice

The difference between customer lifetime value and customer equity is that

• A)customer equity takes a financial approach where customer lifetime value does not.
• B)customer lifetime value looks at specific target markets.
• C)customer equity takes into account a firm's current and future customers and the costs associated with each.
• D)customer equity reflects the total stream of purchases that a customer could contribute to a company over the length of the relationship.
• E)customer lifetime value focuses on purchases over the next year,while customer equity takes into account a longer time horizon.

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Definitions:

ICD-10-CM

International Classification of Diseases, Tenth Revision, Clinical Modification; a coding system used to classify diagnoses, symptoms, and procedures for medical billing in the U.S.

Birthday Rule

A means to identify primary responsibility in insurance coverage; identifies the primary insurance carrier when children have coverage through more than one parent. The insurance of the parent with the birthday earliest in the year, month and day only, is identified as the primary insurer. If both parents have the same birth date, the policy that has been in effect the longest is the primary carrier.

Custody

The legal authority or responsibility to care for someone or something, often used in relation to child custody in legal contexts.

Primary

Refers to the first or most significant condition, factor, or level in a series or system.