Stew Leonard, owner/operator of supermarkets, reacts adversely to losing a single customer sale. He feels that this amounts to losing the entire stream of future purchases that a customer is likely to make if he or she remains in the area. This is an illustration of ________.
A)share of customer
B)market share
C)profitability
D)customer lifetime value
E)market share maintenance

Question

Quizplus · Accepted Answer

Stew Leonard's reaction is reflective of the concept of customer lifetime value, which refers to the total value a customer contributes to a business over their entire lifetime. He believes that losing a single sale means losing a customer's future purchases, thus highlighting his concern for the long-term value of customers. The other options are not suitable as they do not fully reflect Stew Leonard's perspective on losing a customer sale.

Stew Leonard, Owner/operator of Supermarkets, Reacts Adversely to Losing a Single