Please read the provided article(s) and answer 10 multiple choices and True/False questions afterwards.

1. One important value of Customer lifetime value (CLV) estimation is that it will help a rm to determine whether a new customer acquiring initiative is worthwhile.

2. The typical subcomponents of value driver of customer equity are quality, firm ethics, and price.

3. The typical subcomponents of relationship driver of customer equity are loyalty programs, afnity programs, and community-building programs.

4. The limitations of Customer lifetime value (CLV) models include:

1. Highly depend on quality and accuracy of the data utilized
2. Highly depend on the complexity and sophistication of CLV model to reect the dynamic nature of the rm and customer relationship
3. Do not take account of the actions by competitors.
4. May subject to aggregation bias because not all the consumers are the same, especially when a generalized approach is used in the CLV estimation.

Group of answer choices

1. 2. 3

1. 3. 4

all of the above

2. 3. 4

5. Customer equity is dened as the total lifetime value of a rms current and potential customer base.

6. According to the article Customer Equity-wiem01002, there are three elements that drive the creation and growth of customer equity.

1. Value

2. Brand

3. Ethics

4. Relationship

5. Product Quality

7. The essential elements of Customer lifetime value (CLV) estimation consist of the following:

1. Acquisition cost
2. Time interval
3. Net prot
4. Retention rate
5. Discount rate

8. To ensure smooth service encounter in respond to perishability of service, marketers have emphasized the importance of supervisors/managers and companies being selective in hiring service providers and in training them.

9. The primary dimensions of service can be remembered by the acronym "SHIP", standing for "simultaneity, heterogeneity, intangibility, and perishability".

10. The marketing implication to intangibility of service is to facilitate information search. Thus, abstract service can be understood and compared. The paper provided several examples such as showing customers video that preview the service and online social network that can be tailored to communicate well with consumers.