A Key Input Variable in Many Marketing Models of Customer

question 45

Multiple Choice

A key input variable in many marketing models of customer loyalty is the:

• A) Mean profit per customer
• B) Number of customers
• C) Churn rate
• D) Time horizon
• E) All of these options

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Definitions:

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, such as rent or salaries.

Unit Product Cost

The total expense incurred to manufacture or produce one unit of a product, including direct materials, labor, and overhead costs.

Variable Manufacturing Overhead

These are costs that vary with production volume, such as utilities for the production plant or materials.

Net Operating Income

The total revenue from operations minus the operating expenses, exclusive of taxes and interest, in a different phrasing.