If we know that the average revenue of a particular manufacturing product is $75, frequencyof repurchase is six times per year, contribution margin is 10%, and average customer defectionrate is 25%:(a)What is the average value of a loyal customer (VLC) in a target market segment?(b)(c)Analyse how the value of a loyal customer (VLC) will change if the average customerdefection rate varies between 15% and 40% (in increments of 5%) and the frequencyof repurchase varies between 3, 4, 5, 6, 7, 8 and 9 times per year. Plot the graph or useExcel table to illustrate the impact of these assumptions on the VLC.Explain in less than 1,000 word, on the impact of average customer defection rate and frequencyof repurchase. What have you learned from this VLC?

Customer Lifetime Value (CLV) - The entire amount of money a company can anticipate generating from…

Answered: If we know that the average revenue of…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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PLEASE ANSWER ALL TRUE OR FALSE 16. Employee satisfaction is a measure of the internal business perspective of the Balanced Scorecard.17. Success in the customer perspective of the Balances Scorecard should lead to improvement in the financial perspective.18. Key performance indicator scorecards that don’t reflect a company’s strategy can be just aseffective as the Balanced Scorecard.
According to Growth – Share Matrix, the company can invest more in the business unit to hold the SBU’s share at the current level Select one: True False
The customer perspective of the balanced scorecard approacha. is the most traditional view of the company.b. evaluates the internal operating processes critical to the success of the organization.c. evaluates how well the company develops and retains its employees.d. evaluates the company from the viewpoint of those people who buy its products or services.
An enterprise has 120 employees as of January 30, 2020. From the New Year to June 30, 2020, 16 people left the job, while the business had 144 employees at that time.According to the relevant data, what is the workforce turnover rate for the first 6 months of 2020?A) 10%B) 12.5%C) 15%D) 22.73%
Use the Excel template VLC to find the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $90 per visit, the frequency of repurchase is five times per year, the contribution margin is 20 percent, and the average customer defection rate is 25 percent? Round your answer to the nearest dollar. $
The best talent can be recruited by officer development program (ODP). Further, the talent should also be maintained to produce company productivity. c. Explain the advantage and disadvantage to appraise the ODP talent by implementing management by objective (MBO) method.
which of the fallowing is the best example of a business whose goal is to earn a profit?why?? a) community college B) American red cross c)boy scouts of America d)apple
When a person is given the permission to spend the organization’s money on activities that will bring about new customers and increase sales revenue. What is the option that best describes this person? a. Field executive b. Security agent c. Company supplier d. Producer
If you are part of the administration of a private school. (e.g. Lorma Colleges). How would you apply Analytics to improve operation? Give 3 questions you will ask such that the answer you will get will help you make a recommendation to the management with respect to the concern. What strategies should be done to improve enrolment? The questions to be asked should be specific to the analytics below, and you should list at least 3 questions for each analytics. -Three questions for DESCRIPTIVE ANALYTICS -Three questions for PREDICTIVE ANALYTICS -Three questions for PRESCRIPTIVE ANALYTICS
Estimate the value of a loyal customer of a loyal Volvo automobile owner. Assume the contribution margin is 0.31, the purchase price is $60,000, the repurchase frequency is every five years, and the customer defection rate is 20 percent. Do not round intermediate calculations. Round your answer to the nearest dollar. $
Estimate the value of a loyal customer of a loyal Volvo automobile owner. Assume the contribution margin is 0.33, the purchase price is $67,000, the repurchase frequency is every three years, and the customer defection rate is 23 percent. Do not round intermediate calculations. Round your answer to the nearest dollar. $ _________
The financial management is concerned with Select one: a. Reduce profit O b. Increase cost O c. None of the options d. Increase performance e. Optimum utilization of resources

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