Fwd: Grant Bettinger (MBA741: Marketing: Core Concepts and Tools) just sent you a message in Canvas.

[Bettinger, Grant]

FYI on marketing. 


Begin forwarded message:

From: "Dinner, Isaac" <Isaac_...@kenan-flagler.unc.edu>
Date: November 6, 2012, 12:23:33 PM EST
To: "Bettinger, Grant" <Grant_B...@kenan-flagler.unc.edu>
Subject: RE: Grant Bettinger (MBA741: Marketing: Core Concepts and Tools) just sent you a message in Canvas.

Hi Grant & B5:

My group is working on the homework for tomorrow, and we were wondering if there are any practice problems that are similar to the homework.

There is a practice problem on Canvas (under files) which uses CLV.

We aren't sure what to do with the Acquisition Costs for the CLV of question 1.  We held it constant for A to solve for the new acquisition cost for the new retention ratio, but now don't have an acquisition cost to use for question 2.  Can you please steer us in the right direction?

There is no mention so assume acquisition cost of zero. If you use a constant value, it will cancel out in both cases  anyway.



-Isaac



-----Original Message-----
From: Instructure Canvas [mailto:notifi...@instructure.com]
Sent: Tuesday, November 06, 2012 10:09 AM
To: Dinner, Isaac
Subject: Grant Bettinger (MBA741: Marketing: Core Concepts and Tools) just sent you a message in Canvas.

Grant Bettinger (MBA741: Marketing: Core Concepts and Tools) just sent you a message in Canvas:

Hi Isaac,

My group is working on the homework for tomorrow, and we were wondering if there are any practice problems that are similar to the homework. We aren't sure what to do with the Acquisition Costs for the CLV of question 1.  We held it constant for A to solve for the new acquisition cost for the new retention ratio, but now don't have an acquisition cost to use for question 2.  Can you please steer us in the right direction?

Thanks
B5


To reply to this message, click the link below:

http://kenan-flagler.instructure.com/conversations/1138824







________________________________________
You received this email because you are participating in one or more classes using Canvas.  To change or turn off email notifications, visit:
http://kenan-flagler.instructure.com/profile/communication

[Paul, Hubert]

Thanks Grant – so looks like we were right with our assumption on AC

 

Here is what I had as for answers – let me know if anything is wrong and/or you need me to do anything.

 

1a) $188,571.43  ($9.43 x 20,000 customers)

1b) $210,000 ($42 x 5,000 customers)

 

2a) He will eventually break-even as CLV is $265,200.   3000((26(0.85/(1+0.1-0.85))) = 262,500

2b) r = 109.78%    This assumes commissions stay constant for future JWC sales and 10% discount rate

 

 

 

 

Hubert Paul

MBA-Class of 2014・UNC Kenan-Flagler Business School

973.229.6316・Huber...@unc.edu・www.kenan-flagler.unc.edu  

--
You received this message because you are subscribed to the Google Groups "Turtle Power" group.
Visit this group at http://groups.google.com/group/HIAHS?hl=en.
 
 

[Rosenblum, Betsy-Shane]

Sounds about right…who's got a paper copy?  Mine has disappeared on me :(

Bs