When a firm begins to charge high fees for additional services to non-profitable customers, it has determined that the __________ of those customers is too low to warrant added efforts at maintaining a relationship with them.
A) client value
B) lifetime value
C) relational value
D) market share
E) 80/20 value

Question

Quizplus · Accepted Answer

The correct term is "lifetime value," which refers to the total worth of a customer to a business over the entirety of their relationship. When a firm assesses that the lifetime value of certain customers is too low, it may decide to charge high fees for additional services to these non-profitable customers as a strategy to either increase revenue from them or discourage the business relationship.

When a Firm Begins to Charge High Fees for Additional