Use the Excel template VLC to find 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 four times per year, the contribution margin is 15 percent, and the average customer defection rate is 25 percent? Round your answer to the nearest dollar.
Use the Excel template VLC to find 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 four times per year, the contribution margin is 15 percent, and the average customer defection rate is 25 percent? Round your answer to the nearest dollar.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter8: Evolutionary Solver: An Alternative Optimization Procedure
Section8.6: Fitting An S-shaped Curve
Problem 9P
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![Use the Excel template VLC to find 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 four times per year, the contribution margin is 15 percent, and the average customer defection rate is 25
percent? Round your answer to the nearest dollar.
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc00f41a8-3019-411c-9841-b4d3b90602dd%2F12632725-251e-432d-afb9-4820ac8ef394%2Fkz1d9g_processed.png&w=3840&q=75)
Transcribed Image Text:Use the Excel template VLC to find 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 four times per year, the contribution margin is 15 percent, and the average customer defection rate is 25
percent? Round your answer to the nearest dollar.
$
![Revenue per unit
t contribution margin to profit and overhead
Repurchase frequency (purchases/year)
Defection rate
Buyer's life cycle
VLC
$100.00
50.0%
0.25
0.4
2.50
$31.25](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc00f41a8-3019-411c-9841-b4d3b90602dd%2F12632725-251e-432d-afb9-4820ac8ef394%2F08gt17s_processed.png&w=3840&q=75)
Transcribed Image Text:Revenue per unit
t contribution margin to profit and overhead
Repurchase frequency (purchases/year)
Defection rate
Buyer's life cycle
VLC
$100.00
50.0%
0.25
0.4
2.50
$31.25
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