1. What is the customer acquisition cost to Maru Batting Center for the folliwing customers?

A Little Leaguer

A Summer Slugger

An Elite Ballplayer if MBC places the ad in the local baseball enthusiasts magazine

An Elite Ballplayer if MBC purchases the list and invites all target customers to the gala event

An Entertainment Seeker

2. Without discounting cash flows to take into account the time value of money, how soon will MBC break even on the following customers? In all cases, assume that revenues and variable costs to staff the cages occur on an ongoing basis but that the acquisition costs are a one-time event.

A Little Leaguer

A Summer Slugger

An Elite Ballplayer if MBC places the ad in the local baseball enthusiasts magazine

An Elite Ballplayer if MBC purchases the list and invites all target customers to the gala event

An Entertainment Seeker

3. Taking into account the time value of money and assuming that 100% of a customer segment will have experienced attrition once the net present value of annual profits per customer falls below 100, what is the lifetime value to MBC of the following customers? Assume that a customer's lifetime extends up to and including the year in which the net present value of annual profits falls below 100.

A Little Leaguer

A Summer Slugger

An Elite Ballplayer if MBC places the ad in the local baseball enthusiasts magazine

An Elite Ballplayer if MBC purchases the list and invites all target customers to the gala event

An Entertainment Seeker

4. Which is the most attractive customer segment for MBC to target? Why?

Prepare a short report to MBC with your recommendation (question 4), backing it up with data (questions 1-3). Think carefully about the best arguments you can make, and only use facts and data from the case.