Which of the Following Best Describes a Customer Lifetime Value

question 7

Multiple Choice

Which of the following best describes a customer lifetime value (CLV) ?

• A)CLV is the value placed upon a retailer by a consumer.
• B)CLV is a numerical value of how much a "best customer" shops.
• C)CLV is what a customer contributes to a retailer's profits over their entire relationship with the retailer.
• D)CLV is an assessment of how many valued customers shop with a retailer.
• E)CLV is what retailers use to rate the value of guaranteed merchandise.

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Definitions:

Random Sample

A method of selecting a sample from a population in such a way that every individual has an equal probability of being chosen, ensuring the sample’s representativeness of the whole population.

Population

A group of individuals of the same species living and interbreeding within a given area.

Equal Chance

Equal Chance implies situations or contexts in which all individuals have the same likelihood of gaining a benefit or being chosen for a role.

Ethics

Principles that guide behavior in terms of what is morally right or wrong.