Question
A business purchases a new form of consumer relation management technology for $380,000. Because of this purchase, the company earns an extra $50,000 annually. A)
A business purchases a new form of consumer relation management technology for $380,000. Because of this purchase, the company earns an extra $50,000 annually.
A) Find the ROMI for the first year.
B) How many years will it take to get a positive ROMI (i.e. ROMI greater than zero)?
If the extra earnings are expected to increase by 25% annually, how many years will it take to get a positive ROMI?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
A To find the Return on Marketing Investment ROMI for the first year we use the formula ROMI Revenue ...
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Step: 2
Step: 3
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
