Over the course of a customer's lifetime of reading a weekly magazine priced at $4 per issue, what is the value of the magazine? Assume a customer acquisition cost of $12, a retention cost of $0, printing and distribution costs of $1, an annual retention rate of 77% and an annual discount rate of 2.6%. Assume that price and non-marketing variable costs remain constant over the customer's lifetime of reading the magazine. Options: A) 10.05 B) 30.50
Over the course of a customer's lifetime of reading a weekly magazine priced at $4 per issue, what is the value of the magazine? Assume a customer acquisition cost of $12, a retention cost of $0, printing and distribution costs of $1, an annual retention rate of 77% and an annual discount rate of 2.6%. Assume that price and non-marketing variable costs remain constant over the customer's lifetime of reading the magazine. Options: A) 10.05 B) 30.50
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Transcribed Image Text:Over the course of a customer's lifetime of
reading a weekly magazine priced at $4 per
issue, what is the value of the magazine?
Assume a customer acquisition cost of $12,
a retention cost of $0, printing and
distribution costs of $1, an annual retention
rate of 77% and an annual discount rate of
2.6%. Assume that price and non-marketing
variable costs remain constant over the
customer's lifetime of reading the
magazine.
Options:
A) 10.05
B) 30.50
C) 73.49
D) 14.20
E) 0.02
F) 261.25
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