Customer Equity

question 33

Multiple Choice

Customer equity

• A) focuses on the costs of acquiring new customers rather than on increasing revenues from current customers.
• B) is basically a historical measure of how profitable a firm has been in the past.
• C) is a concept that applies to firms that target final consumers but not to firms that target business customers.
• D) will increase if a firm increases its market share with a particular strategy.
• E) is the expected earnings stream of a firm's current and prospective customers over some time period.

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Definitions:

Market System

In this economic framework, decisions related to investment, production, and distribution are governed by supply and demand forces, and the cost of goods and services is dictated by an unrestricted pricing mechanism.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, with prices being determined by free competition among private businesses.

Economic Power

The capability of entities like countries, corporations, or individuals to influence or control market conditions, including prices, supply, and demand.

Freedom Of Enterprise

The freedom of firms to obtain economic resources, to use those resources to produce products of the firms’ own choosing, and to sell their products in markets of their choice.