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matashola matashola
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7 years ago
Hood Industrials received $800 in sales revenue by an average retained customer.  To attain that $800, the company incurred $400 in variable costs and $60 in direct marketing expenses for each retained customer.  Each lost customer generated $200 in sales revenue while costing the company $150 in variable costs and $100 in direct marketing costs.  Each new customer generated $400 in sales revenue, but Hood had to incur $300 in variable costs and $300 in direct marketing expenses for each new customer attained.  If there are 150,000 retained customers, 50,000 lost customers, and 50,000 new customers, which type of customer generates the lowest net marketing contribution?
a.   new
b.   retained
c.   lost
d.   dissatisfied
e.   The net marketing contribution is the same for all types of customers.
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Market Based Management

Market Based Management


Edition: 5th
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D-manD-man
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matashola Author
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7 years ago
Thanks for providing this
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