Why might a company try to determine the lifetime value of a customer? What must a company do to determine this information?
What will be an ideal response?
A company must look at how much profit it expects to make from a particular customer, including each and every purchase he will make from the company now and in the future. To calculate lifetime value, the company estimates the amount the person will spend and then subtracts what it will cost to maintain this relationship. This information will help a company decide which customers should be the focus of promotional efforts and which customers should be "fired."
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The steps that consumers practice to gradually distance themselves from things they treasure so that they can sell or recycle them are called ________
A) recycling instincts B) tangential cycling C) divestment rituals D) underground reinvestments
Soccer's World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n) ________
A) idea B) place C) luxury item D) event E) service