Workbench, a regional home improvement store is in the midst of its planning process for next year.

A recent segmentation analysis of those customers that have registered in their loyalty club revealed an important segment, Occasional Shoppers.

The newly hired VP of Customer Analytics would like to further penetrate the Occasional Shopper segment, but she wants to manage the Average Acquisition Costs per Customer.

Given the availability of two possible lists of Occasional Shoppers, answer the following questions.

Table 1: List Evaluation Expected Response Rate 196 2% Costs per Name Production and Mailing Costs per Mailing $3 $3 Total Costs to Contact One Person Acquistion Costs per Customer List List 1 List 2 $6 $23 Question 1: What are the Acquisition Costs per Customer for List 1. (Show calculation) Question 2: What are the Acquisition Costs per Customer for List 2. (show calculation) Question 3: Which of the following lists should be purchased from the List Broker (company that sells lists of prospective 'Occasional Shoppers') to minimize the Acquisition Costs per Customer? Explain your