Few companies take the time to estimate the value of a good customer (and often spend little effort to keep one). Suppose that a customer at a restaurant spends, on average, R per visit and comes F times each year (for example, if a customer purchases once every two years, then F==05 The restaurant realizes a gross profit margin of M (expressed as a fraction) on the average bill for food and drinks In addition, the fraction of customers defecting (not returning) each year is D Complete parts a and b a. Develop a mathematical model to compute V, the gross profit during a customer's lifetime in doing business with the restaurant (this is often called the economic value of a customer) (Simplify your answer)
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- How can I found the Response rate using the goal seek function to the below question? Question 2-2 (Chapter 2) Continuing the previous problem, use Goal Seek for each value of number mailed (once for 80,000, once for 90,000, and so on). For each, find the response rate that allows the company to break even. Then chart these values, where the number mailed is on the horizontal axis, and the breakeven response rate is on the vertical axis. Explain the behavior in this chart in a brief memo to management. (Winston, 20180101, p. 38) Winston, W. L., Albright, S. C. (20180101). Practical Management Science, 6th Edition. [[VitalSource Bookshelf version]]. Retrieved from vbk://9781337671989Nyka cosmetics is planning to launch cosmetics in teen group caterigary. However,this market is crowded with a lot of competitors already Before the launch , nykaa cosmetics is trying to estimate the potential of thier cosmetics in the market by understanding the following for the next 2 years .The proportion of current cosmetics users( in teen category)who are going to switch to nykaa cosmetics. The source of business of nykaa cosmetics is the percentage of people who would use nykaa cosmetics in 2021 who once used each of the competitors for example 40% of the nykaa cosmetic users in 2021 used to use competitor 1 in 2019 In the next years ,30% of cosmetic users in teen category will switch to nykaa cosmetics .what will be the market share graph for 2021 including the 5 competitorsAssume that a customer shops at a local grocery store spending an average of $250 a week, resulting in the retailer earning a $40 profit each week from this customer. Assuming the shopper visits the store all 52 weeks of the year, calculate the customer lifetime value if this shopper remains loyal over a 10-year life-span. Also assume a 6 percent annual interest rate and no initial cost to acquire the customer. Part 2 This customer yields __ per year in profits for this retailer. (Round to the nearest dollar.) Part 3 The customer lifetime is __
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