A supermarket XYZ is determined to please its customers with a customer advantage card. Currently 30% of
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A supermarket XYZ is determined to please its customers with a customer advantage card. Currently 30% of all shoppers are loyal to XYZ. A loyal customer shops at XYZ 80% of the time. An unloyal customer shops at XYZ 10% of the time. A typical customer spends $150 each week and the profit margin at XYZ is 7.5%. The expected increase of loyal customers is 8% and the percentage of time a loyal customer shops at XYZ is expected to increase by 9%. What is the maximum cost of the advantage card per dollar in order for the program to be profitable?
Related Book For
Statistics for Business and Economics
ISBN: 978-0132930192
8th edition
Authors: Paul Newbold, William Carlson, Betty Thorne
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