what are the revised VLCs over their average buying life? Do not round intermediate calculations. Round your answers to the nearest dollar. For defection rate = 22%, VLC = $   For defection rate = 18%, VLC = $   For defection rate = 16%, VLC = $

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 21P
icon
Related questions
Question

What is the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $75 per visit, the frequency of repurchase is every month, the contribution margin is 23%, and the average customer defection rate is 22%? If a continuous improvement goal is set of a 18% defection rate next year and 16% two years from now, what are the revised VLCs over their average buying life? Do not round intermediate calculations. Round your answers to the nearest dollar.

For defection rate = 22%, VLC = $  

For defection rate = 18%, VLC = $  

For defection rate = 16%, VLC = $  

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Supplier management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,