9. The Canadian Online Drivers Company provides Uber type monthly driving services in the GTA. The Company spends $200,000 on an advertising campaign to reach an audience 20,000 people. The average driver makes $450 per month. The plan is an auto-renewing subscription, but they have a churn rate of 7.5%. Variable costs are $250 per month. They spend $100/year on social media ads and $50 per year on banner advertising. The discount rate is 2.5%. What is the CLV of the customer (rounded to ZERO decimal places)? (3 marks)

8- You are the marketing vice-president of National Bank. In 2020, 400 customers purchased the new National Bank Visa Seneca credit card for the first time due to a unique introductory offer. The bank had access to 20,000 potential Seneca students. a. What is the new account opening trial rate? (1 mark) b. National bank knows that after receiving the benefit of the National Bank Visa offer, it will have a 70% repeat rate of students keeping the Visa Card. As per part a above, National bank sold 400 Visa credit cards in 2018. It expects to add 300 Visa Credit Cards in 2021. Calculate the expected penetration for the Visa credit card? (1 mark)

7- The Rousalino Marketing Company sells 5 units at a price of $90 and three units at a price of $110. If demand is linear: a. What is the quantity that the customer willing to buy if the price of the product is zero? Rounded to zero decimal places. (1 mark) b. What is the lowest price at which quantity demanded equals zero? Rounded to zero decimal places. (1 mark) c. What is the slope of the linear demand curve? Rounded to one decimal places (1 mark) d. using slope from part c, at a price of $10, the company sells 60 units. What is the elasticity? Rounded to two decimal places. (1 mark) e. What does the elasticity calculated in (d) mean? (1 mark)

6- Home renovation services are a highly competitive market where customers are not loyal. Every single one of them is at risk of leaving to another brand. The Patio-Builders Company wants to spend $90,000 on a public buses ad that will reach 200,000 people who are 18+ and living near the city. The margin of the renovation service is $100/month and the Patio-Builders Company believes that 2% will take advantage of this offer. CLV of the acquired customer is $200. Aside from the brand awareness benefits, the Patio-Builders Company wants to know if the advertising is worth it from an economic perspective. a. What is the average acquisition Cost? (1 mark) b. What is the prospect lifetime value (PLV)? Please round to TWO decimal places. (1 mark) c. Is the proposed acquisition spending attractive (Y/N)? Why? (1 mark)

5- Music-O-shop spent $5,400 on online advertising at a CPI of $0.03. That resulted in 12,300 clicks. 63% of those clicks converted into an order being placed in the cart. They typically have an abandonment rate of 70%. Calculate the following: (all rounded to TWO decimals) Clickthrough Rate (CTR%), (1 mark) Cost per Thousand Impressions (CPM$), (1 mark) Cost per Click (CPC$), (1 mark) Cost per Order (CPO$). (1 mark)