1:B2B company for renting modern office space for small businesses is trying to decide which segment of customers it should enter. The options for it are divided into three segments: (a) technological startups, (b) lawyers and accountants, and (c) private therapists. After thorough market research, the following assessments of the characteristics of each segment were obtained:

 

Estimated segment size Willingness to pay a monthly fee per office Maintenance cost per month Departure rate

Startups Estimated segment size10,000 Willingness to pay a monthly fee per office 3000 $ cost per month 400$. in the first month - a departure rate of 10% and then the departure rate increases by 1.05 every month.

Lawyers Estimated segment size 5,000 Willingness to pay a monthly fee per office CPA 6,000 $ Maintenance cost per month 1,000$. in the first month - 10% departure rate and remains constant.

Estimated segment size Private caregivers 8,000 Willingness to pay a monthly fee per office 4500 $ Maintenance cost per month 300$ in the first month - starts at 15% and decreases at 0.94 every month.

 

The one-time cost of purchasing a customer in each of the segments is $ 300 and the effective interest rate is five hundredths of a percent (per month).

I. Which of the segments seems most profitable if you look two years ahead: (a) Per customer? (B) For the whole segment?

Answer rating: 100% (QA)

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