The type of customers vital to a firm introducing a new innovation are the early adopters who are willing to pay higher prices and like to tinker with new products.
<h3>Who are early adopters</h3>
Early adopter are the people who first make use. of a new Innovation.
They are the risk takers and they use a new before any other person.
Therefore, The type of customers vital to a firm introducing a new innovation are the early adopters who are willing to pay higher prices and like to tinker with new products.
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Answer:
B. False
Explanation:
When total debits equals to total credits on a trial balance, we can't assured that there are no errors of any sort occurred during the preceding steps in the accounting cycle.
Following Accounting Errors may result in Balanced Trial Balance
Errors of omissions
Errors of commissions
Errors of misposting
Compensating errors
Errors of Principle
Answer:
Cool Beans
The CLV of a customer over the time horizon of one year prior to the introduction of the loyalty program is:
= $353.60
Explanation:
a) Data and Calculations:
Price of average specialty coffee drink = $3.40
Profit Margin = 65%
Profit Margin = $2.21 ($3.40 * 65%) per drink
Average drinks per customer per week = 2
Total drinks in a year = 104 (2 * 52)
Profit Margin in a year = $229.84 ($2.21 * 104)
Therefore, the Customer Lifetime Value = Gross Revenue
= $3.40 * 2 * 52 = $353.60
b) The Customer Lifetime Value (CLV) is the average purchase value multiplied by the average purchase frequency rate. In this customer's case, the CLV is calculated for only one year and not actually for a lifetime.
The order of the attributes in RFM conforms to the order of their importance in ranking customers. Recency is the most important factor. Recency alone won’t sort out your good customers from your new ones. You need frequency for that. Frequency measures the intensity of a customer’s relationship with your business. How much a customer spends on average or in total is the final measure of his or her monetary value.