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:

Notes Payable

Financial obligations represented by formal written agreements to pay a specific sum of money at a future date.

Pro Forma Statement

Financial statements prepared under hypothetical scenarios or assumptions to forecast future financial performance.

Fixed Assets

are long-term tangible assets used in the operation of a business, such as buildings, machinery, and equipment, not expected to be converted into cash within a year.

Capacity

The maximum amount that something can contain or produce, often used in the context of production and manufacturing.