analysis01

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School

Northeastern University *

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Course

4602

Subject

Marketing

Date

Feb 20, 2024

Type

docx

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Uploaded by jasmine11chiou

MKTG 3402 Gaining Insights from Consumer Data Analysis Homework #1 Please make sure to include the code you used to generate your results. Your manager has come to you to work on the launch of a new service. The service costs the company $5.33 per month to operate. She is curious about the effects of different price points on the predicted overall customer equity. She conducted a survey of customers, asking them to rate their likelihood of continuing to subscribe annually at several different monthly price points - $10, $12.50, $15, and $17.50. You can replicate the survey data by using the following code: set.seed(1234) survey_results <- data.table( c(rep(10, 25), rep(12.5, 25), rep(15, 25), rep(17.5, 25)) ) names(survey_results) <- c("price_point") survey_results$retention_rate <- 1 - survey_results$price_point/48 + rnorm(100, 0, .05) skim(survey_results) 1. Based on this survey data, she asks you to fill in the following table with predicted values for the retention rate. Price point $14 $16 $18 $20 $22 $24 Retention rate 2. Based on the predicted retention rate values in (1), what do you estimate the net CLV to be for these price points, assuming an interest rate of .05 and CAC of $40? Price point $14 $16 $18 $20 $22 $24 CLV 3. Your manager estimates that the overall potential market size is about 1,000,000 customers. She used an auction to estimate how many people would be willing to pay for the service at each of the price points and observed the following results. Given these values, calculate the predicted customer equity for each price point. Price point $14 $16 $18 $20 $22 $24 % would purchase 80% 77% 76% 72% 66% 58% Customer equity 4. Given your calculations in (3), what recommendation would you provide to your manager?

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analysis01

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