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:

Points

In various contexts, it can represent units of measurement, positions on a graph, or specific values or rewards in games and programs.

Leverage

In statistics, the influence a single data point has on the overall outcome of a regression analysis.

Linear Model

A statistical approach for modeling the relationship between a scalar response and one or more explanatory variables using straight-line equations.

Labeled Points

Points in a space marked with identifiers or symbols to denote specific positions or values.