A firm has high customer equity when it has a high proportion of loyal,profitable customers.

Question

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Customer equity refers to the total value of all current and potential future customer relationships that a firm has. This includes factors such as customer loyalty, customer lifetime value, and customer profitability. Therefore, a firm with a high proportion of loyal, profitable customers would have a higher customer equity than one with fewer loyal and profitable customers.

A Firm Has High Customer Equity When It Has a High