Which of the following is false with regard to customer lifetime value?
A) It is a key measurement that forecasts a customer's lifetime economic contribution based on continued relationship marketing efforts.
B) It can be calculated by taking the sum of the customer's present value contributions to profit margins over a specific timeframe.
C) It includes not only an individual's propensity to engage in purchases but also his or her strong word-of-mouth communication about the firm's products.
D) All customers have equal value to a firm.
E) It is the only gauge that incorporates revenue,expense,and customer behavior and adopts a customer-centric approach.

Question

Quizplus · Accepted Answer

This statement is false because not all customers have equal value to a firm. Some customers may provide significant revenue and profits, while others may not contribute much. Determining the value of each customer helps a company to allocate resources more strategically and focus on high-value customers.

Which of the Following Is False with Regard to Customer