Which of the Following Is Not True About Customer Value

question 22

Multiple Choice

Which of the following is not true about customer value and capital budgeting?

• A)Managers use NPV calculations to examine the effects of alternative ways to increase consumer loyalty.
• B)Managers use NPV calculations to examine the effects of alternative ways to increase customer retention.
• C)A comparison of the year-to-year changes in customer NPV estimates highlights whether managers have been successful in maintaining long-term relationships with their consumers.
• D)Managers can compare the year-to-year changes and then examine the reason for a decline and devise new product development and marketing strategies for the future.
• E)The use of NPV restricts the manager and the manager can't use the NPV calculations to examine the effects of alternative choices.

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Definitions:

Type II Error

A statistical error that occurs when a test fails to reject a false null hypothesis, also known as a "false negative."

Mean Battery Life

The average duration that a battery can power a device before depletion, calculated from a sample or population of batteries.

Production Method

The process or technique used in the creation of goods and services, often categorized by levels of automation and labor requirements.

Mean Price

The average price of a set of products or securities, calculated by adding all prices together and dividing by the number of prices.