According to Relationship Marketing, the Lifetime Value of a Customer

question 132

True/False

According to relationship marketing, the lifetime value of a customer should exceed the investment made by the firm to attract and keep the customer.

---

Definitions:

Current Assets

Resources anticipated to be transformed into cash, sold, or used up within a year or throughout the usual operational cycle of the company.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Net Purchases

The total amount spent on purchases of goods for resale after subtracting any purchase returns, allowances, and discounts.

Operating Expenses

Costs associated with running a business's day-to-day operations, excluding the cost of goods sold.