Customer profitability analysis definition
[DOC File]CHAPTER 14
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Thus, customer profitability, which today is often measured at the gross margin level, is increasingly allocating costs below the gross margin line to individual customers. For instance, costs per customer such as those below are increasingly being considered to arrive at a more detailed assessment of customer profitability:
[DOC File]Chapter 1
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definition “Porter’s five forces model is an analysis tool that uses five forces to determine the profitability of an industry and shape a firm’s competitive strategy. “It is a framework that classifies and analyzes the most important forces affecting the intensity of competition in an industry and its profitability level.”
[DOC File]CHAPTER 13
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The simplest definition of modern marketing is managing profitable customer relationships. (Answer: True; p. 2; Easy; LO1) A thorough definition of marketing tells us that it is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
[DOC File]CHAPTER 14
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The ABC customer profitability analysis defined the five customers, allowing bank executives to decide which ones should be emphasized. Additionally, cost management will continue to serve an important role in strategic positioning. First, it can be used to assess the profitability success of targeted markets and customer segments.
[DOC File]THE CUSTOMER PYRAMID: CREATING AND SERVING …
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Customer-profitability analysis examines how individual customers differ in their profitability. The revenues and costs of each customer can be estimated with varying degrees of accuracy. Revenues of IF typically would be known at the time of sale.
[DOC File]Basic Terms, Concepts, & Definitions
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Customer profitability analysis highlights to managers how individual customers differentially contribute to total profitability. It helps managers to see whether customers who contribute sizably to total profitability are receiving a comparable level of attention from the organization.
[DOC File]Chapter 13: Strategic Cost Management
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81. Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called Activity-Based Costing (ABC). Answer: True Page: 149 Level of difficulty: Medium . 82. According to customer profitability analysis (CPA), platinum customers spend the most money with the organization thereby making them valuable.
[DOC File]Marketing Management – 12th Edition – Kotler/Keller
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Profitability Analysis The analysis of profit derived from cost objects with the view to improve or optimize profitability. Multiple views may be analyzed, such as market segment, customer, distribution channel, product families, products, technologies, platforms, regions, manufacturing capacity, etc.
[DOCX File]BEST PRACTICES: CUSTOMER RELATIONSHIP MANAGEMENT
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Weinberg, G., “Product/Customer Critical Evaluation,” Management Accounting (January 1999) p.25 [4p]. 182 Chapter 13. Strategy, Balanced Scorecard and Strategic Profitability Analysis …
Customer Profitability Analysis - Wikipedia
The Customer Pyramid is a tool that enables the firm to utilize differences in customer profitability to manage for increased customer profitability. Firms can utilize this tool to strengthen the link between service quality and profitability as well as determine optimal allocation of scarce resources.
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