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With respect to its long-term pleasant relationship with IBM, Indian School of Business (ISB) refers six other universities to purchase IBMs cloud computing service. The
- With respect to its long-term pleasant relationship with IBM, Indian School of Business (ISB) refers six other universities to purchase IBMs cloud computing service. The degree to which ISBs reference impacted university ns purchase decision (Ref), the degree of influence of ISBs reference on university n (DOI), the customer lifetime value of university n, and the time university n became a customer of IBM that are given here:
University Name | Ref | DOI | CLV ($) | Time |
IIM-A | 70% | 80% | 1515 | Year 1 |
IIM-B | 60% | 70% | 1204 | Year 1 |
IIM-C | 30% | 40% | 3026 | Year 2 |
FMS | 30% | 30% | 1006 | Year 2 |
MDI | 60% | 60% | 2415 | Year 3 |
XLRI | 70% | 50% | 2032 | Year 3 |
Calculate the Business Reference Value (BRV) of ISB for IBM. Assume the discount rate is 15% per year.
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