Customer Equity

question 316

Multiple Choice

Customer equity

• A) is of concern to top management, but not very relevant in planning a particular marketing strategy.
• B) takes the perspective of the selling firm.
• C) always increases over time, at least as long as a firm can stay in business.
• D) is important to marketing managers but of little interest to customers.
• E) increases as long as the number of customers that a firm serves increases over time.

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Definitions:

Payment

The transfer of money or goods from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Acceptance

In contract law, the expression of assent to the terms of an offer in such a manner that a binding contract is formed between the parties.

Waiver Of Presentment

An agreement to waive the formal presentation of an instrument, such as a check or draft, for payment.

Notice Of Dishonor

A formal notification indicating that a negotiable instrument, such as a check, has been refused payment.