Clear Vision Entertainment, Inc. is a digital satellite television provider that charges $25 per month for service. The company plans to increase marketing expenditures aimed at customer retention next year, but wants to determine CLV before making this decision. Variable Costs before marketing are $6 per account per month. Per year, the company spends $37 per account in retention costs spread equally across the year. Clear Vision's annual attrition rate is 19% with a monthly discount rate of 1.4%. What is Clear Vision's CLVrem for existing customers? PS2 0.00 dollars 1 2 3 4 5 6 7

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
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Clear Vision Entertainment, Inc. is a digital satellite television provider that charges $25 per month
for service. The company plans to increase marketing expenditures aimed at customer retention next
year, but wants to determine CLV before making this decision. Variable Costs before marketing are
$6 per account per month. Per year, the company spends $37 per account in retention costs spread
equally across the year. Clear Vision's annual attrition rate is 19% with a monthly discount rate of
1.4%.
What is Clear Vision's CLVrem for existing customers?
TUTORIAL
0.00 dollars
PS2
1 2
3
4
5
6 7
CALCULATED VARIABLES:
clv = $514.10
rr = 0.9826 (98.26%)
rc = $3.08
cm =
$19
Transcribed Image Text:Clear Vision Entertainment, Inc. is a digital satellite television provider that charges $25 per month for service. The company plans to increase marketing expenditures aimed at customer retention next year, but wants to determine CLV before making this decision. Variable Costs before marketing are $6 per account per month. Per year, the company spends $37 per account in retention costs spread equally across the year. Clear Vision's annual attrition rate is 19% with a monthly discount rate of 1.4%. What is Clear Vision's CLVrem for existing customers? TUTORIAL 0.00 dollars PS2 1 2 3 4 5 6 7 CALCULATED VARIABLES: clv = $514.10 rr = 0.9826 (98.26%) rc = $3.08 cm = $19
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