1. (10 points) A marketer is looking to promote a new DVD release to their customer database. They have segmented their customer base into five groups, referred to as A - E based on their likelihood of responding. Each active buyer contributes approximately $15 and the cost of reaching out to each customer is approximately $0.50. Complete cells a-j in the table below: Group # Customers # Buyers Lift Gains A 2,000 125 a. f B 2,000 110 b. C 2,000 85 h. D 2,000 55 d. 1 . F 2,000 25 e. j .2. (5 points) A catalog retailer is preparing to release a new catalog. They initially tested the response to the catalog in a subset of their customers. In the initial test, they reached out to 30,000 customers and sent them a copy of the catalog, which costs $0.55. 980 customers made a purchase, spending an average of $75. The retailer's margin is 40% (i.e., variable costs are 60%). a. What was the gross profit in dollars of this test mailing? b. What was the gross profit as a percent of gross sales? C. What was the return on marketing expenditures (gross profit as a function of marketing costs)? d. What was the breakeven for this campaign? e. The marketer now engages in RFM analysis. They identify that RFM cell 452 had a response rate of 3.20%. What is the breakeven index for that group