1. Customers create long-term value because they have __________ .

A. money

B. memories

C. needs

D. values

2. Value creators are companies whose:

A. customer value rate is below their cost of capital

B. customer value rate is above their cost of capital

C. customer value rate is equal to their cost of capital

D. customer value rate is below zero

3. Legacy metrics include all of the following EXCEPT:

A. cost of goods sold

B. number of new customers acquired

C. earnings before interest, taxes, depreciation, and amortization

D. customer’s LTV-based metric

4. All of the following are factors in defining customer equity except:

A. reducing servicing costs per customer

B. acquiring more valuable customers

C. increasing customer attrition

D. increasing profit per customer

5. What characteristic dictates most whether a company would benefit from customer analytics?

A. whether the company has a Web site

B. whether the company generates large amounts of customer-specific information

C. whether a company is customer-centric

D. the number of employees a company has