Which of the following factors would a marketer NOT normally consider when estimating the real value of a customer lifetime?
A) the cost of maintaining the relationship with this type of customer
B) the average profit contribution from a purchase
C) the likely future purchase pattern of this type of customer
D) the customer's frequency of purchase in each period
E) the customer's discretionary spending for the product category

Question

Quizplus · Accepted Answer

While a customer's discretionary spending for the product category may give insight into their potential lifetime value, it is not a direct factor that marketers would normally consider when estimating the real value of a customer lifetime. Instead, the factors that marketers typically consider include the cost of maintaining the relationship, average profit contribution per purchase, likely future purchase pattern, and frequency of purchase in each period.

Which of the Following Factors Would a Marketer NOT Normally