Customer Lifetime Value

question 113

Multiple Choice

Customer lifetime value

• A)emphasizes a short-run approach to marketing management.
• B)is basically a historical measure of how profitable a firm has been in the past.
• C)applies to firms that target final consumers but not to firms that target business customers.
• D)will increase if a firm increases its market share with a particular strategy.
• E)considers what a customer purchases from a company over the lifetime of the relationship.

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Definitions:

Yearly Dividend

The total dividend payment a company distributes to its shareholders annually, often expressed as a per share amount.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Reinvesting

The action of using profits or dividends from investments to purchase additional shares or assets, aiming to increase future earnings.

Annual Dividend

The total amount of dividend payments made to shareholders over a one-year period.