Many marketing experts believe calculating the lifetime value of a market segment is superior to calculating the value for a singe individual because:
A) it is a larger number
B) it is more stable than an individual
C) costs cannot be allocated per individual
D) it sums costs across a market segment

Question

Quizplus · Accepted Answer

Calculating the lifetime value of a market segment sums up the costs across the entire segment, giving a more accurate representation of the potential value of that segment. This is more useful than calculating the value of a single individual, which may not provide as much insight into the overall market potential. Additionally, costs cannot always be allocated to a single individual, making it difficult to accurately calculate their value.

Many Marketing Experts Believe Calculating the Lifetime Value of a Market