Complete Question: Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to ________.
A) reduce the rate of customer defection
B) make low-profit customers more profitable
C) enhance the growth potential for each customer through cross-selling
D) increase the longevity of the customer relationship
E) focus disproportionate effort on high-value customers
Answer:
B) make low-profit customers more profitable
Explanation:
Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to make low profit customers more profitable.
The basic logic behind this strategy is that when customers find something coming free, then they start taking it for granted, they don't pay much attention to it, therefore, when the some services are free, customers will not be spending much on them, like upgrading, monthly plan up-gradations, monthly or annual subscriptions. Consequently, to turn the those customers into highly valuable customers, companies charge for the services which were free of cost in the past.
Leaving Your Mail Unguarded. ...
Throwing Sensitive Documents into Your Trash. ...
Losing Your Wallet or Smartphone. ...
Falling for Cyberscams. ...
Using an Insecure Internet Connection.
You're indeed correct with your guess. Nice work!
Answer:
Present value = $75,379.47
Future value is $91,567.97
Explanation:
a) Present value of cash flow is calculated as:
![Present\ value = \frac{(15,555}{1.067} + \frac{(31,110}{(1.067)^2}) + \frac{(46,665}{(1.067)^3})](https://tex.z-dn.net/?f=Present%5C%20value%20%3D%20%5Cfrac%7B%2815%2C555%7D%7B1.067%7D%20%2B%20%5Cfrac%7B%2831%2C110%7D%7B%281.067%29%5E2%7D%29%20%2B%20%5Cfrac%7B%2846%2C665%7D%7B%281.067%29%5E3%7D%29)
Present value = $14578.25 + $27,325.69 + $33475.53
Present value = $75,379.47
b) Future value of windfall is calculated as
![Future\ value = present\ value \times (1-r)^n](https://tex.z-dn.net/?f=Future%5C%20value%20%20%3D%20present%5C%20value%20%5Ctimes%20%281-r%29%5En)
![Future\ value = 75379 \times (1+ 0.067)^3](https://tex.z-dn.net/?f=Future%5C%20value%20%20%3D%2075379%20%5Ctimes%20%281%2B%200.067%29%5E3)
Future value is $91,567.97
Answer:
True
Explanation:
In industry, inventory buildups are cancelled with increased sales and marketing activities, which attract rewards and punishments. This is why it is always a taboo to observe idle workers. Idle workers cost the entity much in expenses. Workers are employed based on productivity and profitability indexes. There is no business entity that employs workers for the fun of employment.