Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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%.

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Commodity Option Pricing A Practitioner's Guide

Authors: Iain J. Clark

1st Edition

1119944511, 978-1119944515

More Books

Students also viewed these Finance questions