Answered: What happens to Customer Lifetime Value…

What happens to Customer Lifetime Value (ignoring acquisition costs) when retention rate r is increased by 10%? Assume a positive margin m, a positive retention rate r, and a discount rate of 10%.

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

Section: Chapter Questions

Problem 1.1DQ

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What happens to Customer Lifetime Value (ignoring acquisition costs) when retention rate r is increased by 10%? Assume a positive margin m, a positive retention rate r, and a discount rate of 10%.

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