The Term "Lifetime Value of a Customer" Refers to Revenues

question 158

True/False

The term "lifetime value of a customer" refers to revenues and intangible benefits such as referrals and customer feedback a customer brings to the seller over an average lifetime of their relationship,less the amount the company must spend to acquire,market to,and service the customer.

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Definitions:

Economic Profit

The variance between an enterprise's aggregate income and total outlays, taking into account both clear and assumed costs.

Short-Run Equilibrium

The state in a market where supply equals demand within a limited time frame, before any long-term adjustments take place.

Long-Run Equilibrium

A state in which all factors of production and outputs are optimal, allowing for all economic agents to have no incentive to change their behavior.

MC

A term often short for Marginal Cost, which is the cost added by producing one additional unit of a product or service.