The Difference Between Customer Lifetime Value and Customer Equity Is

question 248

Multiple Choice

The difference between customer lifetime value and customer equity is ________.

• 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:

One-group Pretest-posttest Design

A research design where a single group of subjects is tested before and after a treatment to observe changes.

Pretest

An assessment given before a main intervention or treatment to establish a baseline measure of the participants' knowledge or skills.

Experimental Manipulation

The deliberate alteration of variables in an experimental setup to study its effects on the outcome.

Participant's Behavior

The actions or reactions of individuals taking part in a study, influenced by experimental conditions or their own characteristics.