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1. The net present value of a customer is: Please Explain why it is the answer....

1. The net present value of a customer is:

Please Explain why it is the answer.


a. a measure of how customers assess the benefits of a product in making purchase decisions.
b. a measure of the likelihood that satisfied customers will recommend the product to other customers.
c. the total profits (revenues associated with a customer minus the expenses needed to serve a customer) discounted over time.
d. the total value of the benefits offered by a customer in a customer-supplier partnership.

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Answer #1

c. the total profits (revenues associated with a customer minus the expenses needed to serve a customer) discounted over time.

It is the value today of all of the future revenue minus the cost of all future expenses today.

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