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Q2: Sam Quinn is a student at NEU Boston Campus and buys his groceries from Whole Foods (WF). To encourage students to shop at Wholefoods,
Q2: Sam Quinn is a student at NEU Boston Campus and buys his groceries from Whole Foods (WF). To encourage students to shop at Wholefoods, one time 'Welcome Coupon' of $500 is given to each student during the first year to spend on groceries at WF. The store wants to know how 3 much each student spends at their stores and the associated costs to see the profithability of customers on an individual basis. Whole Foods started tracking income from individual students and Sam was one of the customers randomly chosen for this study. The table below shows Sam's revenue and the associated expenses the company incurred to acquire and maintain Sam as a loyal customer. As per company policy, strategies for customer retention are initiated if the projected LTV per customer is greater than 4 times the acquisition cost. Assume a discount rate of 10%
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