Question: A strong linear positive association between lifetime and profits does not necessarily exist. 5 A static and a dynamic lifetime-profit analysis can exhibit a much-differentiated
A strong linear positive association between lifetime and profits does not necessarily exist.
5 A static and a dynamic lifetime-profit analysis can exhibit a much-differentiated picture:
Profitability can occur for the firm from high and low lifetime customers. We discovered that, for our case at least, profits do not increase with increasing customer tenure, thereby adding new empirical evidence to the domain.
5 The cost of serving long-life customers is not lower.
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