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Murljashka [212]
4 years ago
15

T-mobile would like to increase spending to acquire customers. Jessica, the head of marketing department, knows that 20% of cust

omers leave company every year based on data and simulation. She does not want to overspend so she decide to acquire customers whose CLV equals or exceeds $5000. If Karly is expected to bring $2000 annual margin, the company should not spend more than ___________________ to acquire her as a new customer. Assume that the company's discount rate is 20% per year. Group of answer choices A. $500 B. $800 C. $1000 D. $1200 E. $1500
Business
1 answer:
Softa [21]4 years ago
8 0

Answer:

C. $1000

Explanation:

Given that;

20% of customers leave company every year

Jessica  decide to acquire customers whose CLV equals or exceeds $5000

If Karly is expected to bring $2000 annual margin

assuming  that the company's discount rate is 20% /year =0.2/ year

The objective is to determine the amount the company will  spend to acquire her (i,e Karly) as a new customer.

The amount the company will spend to acquire her as a new customer is :

= amount of CLV  × discount rate

= $5000 × 0.2

= $1000

Thus, the company should not spend more than  <u> $1000  </u>  to acquire her as a new customer

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During the 1990s, one of the dominant firms in the U.S. cigarette industry would raise prices once or twice a year by about 50 c
ahrayia [7]

Answer: price leadership

         

Explanation: Price leadership is a circumstance where one business, typically the dominant one in its market, sets prices that its rivals follow closely.

This business is typically the one with the minimum cost of production, thus being able to outperform the prices charged by any rival who tries to set their prices below the price range of the market leader.

Rivals could increase prices than the cost leader, but this would likely lead to lower share of the market unless rivals were able to distinguish their goods adequately.

Hence from the above we can conclude that the given case depicts price leadership strategy.

3 0
3 years ago
In a process called __________, a customer visits a store to touch, feel, and even discuss a product's features with a sales ass
Lerok [7]

Answer:

b. showrooming

Explanation:

Showrooming is when a shopper visits a store to check out a product but then may eventually purchases the product online if there is a better deal.

This occurs because, while many people still prefer seeing and touching the merchandise they buy, many items are available at lower prices through online vendors. As such, local stores essentially become showrooms for online shoppers.

7 0
3 years ago
Carmen is a member of a student taskforce that was asked to recommend solutions to the university's budget problem. when she not
9966 [12]

Answer: democratic leadership

Carmen stated a possible solution that was increasing tuition fee and then Carmen said that it should be considered. This means that she did not impose it that that is the only solution and that has to be done in any way, if she did then it would’ve been autocratic leadership.

Carmen left some room for discussion and this means it is a democratic approach in leadership.  


8 0
4 years ago
What annual rate of return is implied on a $2,500 loan taken next year when $5,375 must be repaid in year 6? (Do not round inter
Zarrin [17]

Answer:

16.54%

Explanation:

We have to applied the rate formula that is shown in the attachment.

The NPER shows the time period.  

Given that,  

Present value = $2,500

Future value or Face value = $5,375

PMT = $0

NPER = 6 years - 1 years = 5 years

The formula is shown below:  

= Rate(NPER,PMT,-PV,FV,type)  

The present value come in negative  

So, after solving this,  the annual rate of return is implied is 16.54%

4 0
3 years ago
Techilex delivers timber directly to furniture manufacturers. The company takes legal possession of the timber it distributes. T
Sindrei [870]

Answer:

The correct answer is drop shipper.

Explanation:

Drop shipping can be defined as one of the supply chain management method where the vendor does not stock any product.

In drop shipping when a vendor gets any order from the customer, the vendor forwards it to the third party for order fulfillment and then ships the product directly from the third party to the customer by the name of the vendor.

According to the scenario, techilex does not store any product but only facilitates delivery for the products shows the drop shipping type of business.

8 0
3 years ago
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