Customer Lifetime Value Represents

question 39

Multiple Choice

Customer lifetime value represents:

• A) the portion of income spent on leisure by a customer over the course of his lifetime.
• B) the increase in the purchase of current goods and services that results from an increase in income.
• C) a customer's assessment of the value of the brand, above its objective value.
• D) the present value of the likely future income stream generated by an individual purchaser.
• E) the tendency of a customer to stick with a brand even when it is priced higher than an otherwise equal product.

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Definitions:

Quality of Production

The degree to which products or services meet or exceed customer expectations in terms of features, reliability, and performance.

Error Rates

The frequency of errors or mistakes occurring in a process, system, or activity, typically expressed as a percentage or ratio.

Output Standards

Predetermined levels of performance or production that serve as benchmarks for evaluating the efficiency and effectiveness of processes.