Which of the Following Is Most Likely to Increase a Firm's

question 170

Multiple Choice

Which of the following is most likely to increase a firm's customer equity?

• A) The firm offers a more costly marketing mix that attracts more customers.
• B) The firm offers customer value that is at least as good as what is offered by competitors.
• C) The lifetime value of the firm's individual customers increases.
• D) The competition in the firm's market increases.
• E) The firm cuts costs by reducing promotion efforts.

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Definitions:

Market Price

The current price at which a good or service can be bought or sold in a marketplace.

Unionized Plumbers

Plumbers who are members of a labor union, which negotiates wage rates and working conditions on their behalf.

Wage Rate

The amount of compensation paid to an employee by an employer in exchange for work performed, typically expressed per hour or year.

Total Demand

The complete quantity of a good or service that consumers are willing and able to purchase at a certain price level across the market.