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Belinda's Lawn Service runs a radio ad during a slot that has 7,500 listeners. It costs her $1295. She anticipates an acquisition rate of 2.5%.
Belinda's Lawn Service runs a radio ad during a slot that has 7,500 listeners. It costs her $1295. She anticipates an acquisition rate of 2.5%. She offers a special price for the first lawn mowing that will net her only $8. She expects the CLV of acquired customers to be $335. 6. What is her PLV? 7. Is the number you got for #6 good or bad? Justify your answer. 8. How many customers will she gain from this ad? 9. Assume that she has the option of running the ad in a different time slot, which has 11,000 listeners, but the ad would cost $1395. Assuming everything else stays constant, what would this PLV be? 10. Now assume she has a third option: run the ad in the middle of the night. The ad would only reach 1,000 customers, it would cost her $179, and her acquisition rate would be 0.35%. What would this PLV be? 11. Which of these three options has the lowest break even acquisition rate
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