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Two airlines, AERO and OAirlines, compete for a market of 10 million customers. The company AERO intends to launch a campaign to promote its

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Two airlines, AERO and OAirlines, compete for a market of 10 million customers. The company AERO intends to launch a campaign to promote its SKY FREE frequent KM card, to strengthen the loyalty of its current customers and hoping to recover market. Each loyal passenger earns an average of 1,000 pesos per month. The current state of consumer behavior is given by the following matrix: LIKELIHOOD OF CUSTOMER LOYALTY AERO OAirlines AERO 0.5 0.3 OAirlines 0.5 0.7 After the promotion campaign the following situation is expected: LIKELIHOOD OF CUSTOMER LOYALTY AERO AERO 0.7 OAirlines ? OAirlines 0.3 ? If the cost of the promotional campaign will be 100 million pesos per year, assuming investment and immediate effect, determine the values ? In such a way to obtain a profitability of 200 Million (that is, increase sales by 300 Million, compared to before starting the campaign) Thank you :)

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