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17.A clothing company X caters to two distinct segments: (1) young female professionals, who go shopping every quarter and spend $500 per shopping spree; (2)

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17.A clothing company X caters to two distinct segments: (1) young female professionals, who go shopping every quarter and spend $500 per shopping spree; (2) students, who go shopping once per year and spend $550. Gross margins are 15% and include all costs except the ad campaigns. The company agrees that the most efficient way of communicating with young professionals is through print and tv advertisements which costs them $11,000 and $29,000 per year, respectively (expected to decrease by 50% thereafter). On average, such media \"convert" 100 individuals. On the other hand, social media marketing is employed to target students: $3,900 per year, and converts 50 people. Once \"converted\" young professionals generally stay loyal to clothing brands i.e. retention rate: 70%. Students, on the other hand, like to experiment and shop around i.e. retention rate: 30%. Complete the following table, and determine how many years will it take to break even in each segment Gain per customer Cost of acquisition per customer Retention rate Total expected profit per customer Cumulative prot per customer

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