Five Part Question:

1. Gupta and Lehmanns customer equity study showed that customer equity was measurably impacted most by:

A. reducing the cost of new customer acquisition

B. increasing customer retention rates

C. raising product margins

D. increasing stock prices

2. All of the following represent lifestyle changes relevant to predicting LTV change except:

A. A customer signs up for an e-mail newsletter.

B. A privately held business goes public.

C. A customer earns an advanced degree.

D. A customers health status changes.

3. Traditional measures of financial success emphasize:

A. prioritizing long-term value over short-term value

B. prioritizing short-term value over long-term value

C. balancing short-term value with long-term value

D. focusing on long-term value to the exclusion of short-term value

4. The actual economic value of any business enterprise can be measured in terms of:

A. the discounted net present value of the future stream of cash flow

B. the future value of the net present cash flow

C. the discounted net present value of average past earnings

D. the future value of past net cash flow

5. Creating maximum customer value requires:

A. prioritizing long-term value over short-term value

B. prioritizing short-term value over long-term value

C. balancing short-term value with long-term value

D. focusing on long-term value to the exclusion of short-term value