Customer life-cycle costs focus on the total costs incurred by a customer to acquire, use, maintain, and dispose of a product or service.

Question

Quizplus · Accepted Answer

Customer life-cycle costs take into account all of the costs that a customer will incur throughout their entire relationship with a product or service, not just the initial cost of purchase. This includes ongoing maintenance and repairs, upgrades, and eventually disposal or replacement. By considering the full life-cycle costs, companies can better understand the total value proposition of their offerings and make more informed pricing and marketing decisions.

Customer Life-Cycle Costs Focus on the Total Costs Incurred by a Customer