Customer Lifetime Value

question 9

Multiple Choice

Customer lifetime value:

• A) Involves hard thinking and analysis of how the product fits into the value-added process
• B) Is an estimate to improve market share potential and track performance
• C) Is an estimate of the net present value of the stream of benefits from a customer, less the burdens of servicing the account
• D) Is an estimate of satisfaction or buying intentions
• E) Involves sorting prospective customers on the basis of how they buy

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Definitions:

Pure Monopolist

An exclusive market condition where a single company or entity has complete control over the production and sale of a product or service.

Nondiscriminating Pure Monopolist

A monopolist who charges all consumers the same price for its product or service, regardless of the market segment.

Marginal Revenue

The supplementary earnings obtained through the sale of one extra product or service unit.

Imperfectly Competitive Producers

Producers in a market structure where they have some control over the price of their products due to a lack of perfect competition.