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estimate the value of a loyal customer of a loyal volvo automobile owner? assume the contribution margin is 0.32, the purchase price is $ 70,000
estimate the value of a loyal customer of a loyal volvo automobile owner? assume the contribution margin is 0.32, the purchase price is $ 70,000 the repurchase frequency is every four years, and the customer defection rate is 30 percent.
HINT:
RF= repurchase frequency= 1/4 years = 0.25 purchases per year.
BLC = buyer's life cycle = (1/0.3 = 3.33 years)
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