Market Based Managment Quiz
2 out of 2 points
Estimate the net present value of the customer cash flow with an 80% customer retention rate and a 10% discount rate if the initial cost to acquire this customer is $50, and the business receives $30 in revenues in the first year, $40 in the second, $45 in the third, $50 in the fourth, $55 in the fifth, and $0 in the sixth.
Answer
Selected Answer:
Correct Answer:
• Question 2
2 out of 2 points
What three components combine to form the customer loyalty index (CLI)?
Answer
Selected Answer:
customer satisfaction, customer retention and customer recommendation
Correct Answer:
customer satisfaction, customer retention and customer recommendation
• Question 3
2 out of 2 points
Time Works, Inc. incurs $400 in variable costs and $60 in marketing expenses for each $800 in sales revenue generated by a retained customer. If there are 150,000retained customers, what is Time Works, Inc.s net marketing contribution from these customers?
Answer
Selected Answer:
$51,000,000
Correct Answer:
$51,000,000
• Question 4
2 out of 2 points
New customers _____.
Answer
Selected Answer:
are usually less profitable than retained customers
Correct Answer:
are usually less profitable than retained customers
• Question 5
2 out of 2 points
The strength of a managers customer focus is correlated to their level of ____.
Answer
Selected