Define customer equity and explain how a company can increase it
What will be an ideal response?
Customer equity is the sum of the lifetime values of all of the company's current and potential customers. It's a measure of the future value of the company's customer base. Clearly, the more loyal the firm's profitable customers, the higher its customer equity. Customer equity may be a better measure of a firm's performance than current sales or market share. To increase customer equity, companies should work to delight their customers and establish full relationships with their most profitable customers.
You might also like to view...
A corporation has 10,000 shares of $100 par stock outstanding. If the corporation issues a 5-for-1 stock split, the number of shares outstanding after the split will be 40,000
a. True b. False Indicate whether the statement is true or false
The issuance of common stock increases both ____________________ and stockholders' equity
Fill in the blank(s) with correct word
Which of the following statements is CORRECT?
A. Most sinking funds require the issuer to provide funds to a trustee, who saves the money so that it will be available to pay off bondholders when the bonds mature. B. A sinking fund provision makes a bond more risky to investors at the time of issuance. C. Sinking fund provisions never require companies to retire their debt; they only establish "targets" for the company to reduce its debt over time. D. If interest rates have increased since a company issued bonds with a sinking fund, the company is less likely to retire the bonds by buying them back in the open market, as opposed to calling them in at the sinking fund call price. E. Sinking fund provisions sometimes turn out to adversely affect bondholders, and this is most likely to occur if interest rates decline after the bond has been issued.
The organizational chart of Acme Global looks like a pyramid. It illustrates the various layers in the organization and provides information on the chain of command. Overall, it provides information on ______ in the organization.
A. centralization B. vertical differentiation C. formalization D. horizontal differentiation