Customer Lifetime Value Includes the Net Present Value of the Stream

question 119

Multiple Choice

Customer lifetime value includes the net present value of the stream of profits over a customer's lifetime and _____.

• A) the costs associated with satisfying that customer
• B) the costs associated with keeping that customer for more than 10 years
• C) the retention rate for all customers
• D) opportunity cost saved from having loyal customers
• E) the worth attributed to the equity a good customer can bring

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Definitions:

Performance Appraisal

Performance appraisal is the systematic evaluation of employees' job performance and productivity to understand their abilities for further growth and development within an organization.

Goals

Targets, objectives, or outcomes that an individual, group, or organization aims to achieve.

Forced-Distribution Method

The forced-distribution method involves grouping employees into predefined frequencies of performance ratings.

Performance Ratings

Assessments of an employee's job performance, often used for feedback, development, and decisions about promotions or raises.