Customer Equity Is

question 280

Multiple Choice

Customer equity is

• A) simply the financial result achieved by a single marketing strategy.
• B) the total difference between the benefits of a firm's whole marketing program and total costs of obtaining those benefits, as the group of target customers sees it.
• C) increased when a firm is able to increase the earnings stream expected from current or prospective customers.
• D) decreased whenever the firm's costs of offering a marketing mix increase.
• E) the difference between the benefits of a firm's marketing mix and the cost of obtaining those benefits--as a particular customer sees it.

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Definitions:

Factor Of Production

Essential resources used in the production of goods and services, such as labor, capital, land, and entrepreneurship.

Supply Curve

The Supply Curve is a graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing and able to sell at each price level.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or factor of production.

Marginal Product

The additional output that is produced by employing one more unit of a specific input, holding other inputs constant.