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:

Price Ratio

The relationship between the prices of two goods, indicating how many units of one good can be exchanged for one unit of the other.

Utility Ratio

The comparison of the utility (satisfaction) received from one choice relative to another.

Capital Goods

Physical assets used by businesses to produce goods and services, such as machinery, buildings, and equipment.

Investment

In economics, spending for the production and accumulation of capital and additions to inventories.