Question 3 Each airline customer spends $480 per year to receive access to the VIP waiting...

Transcribed Image Text:

Question 3 Each airline customer spends $480 per year to receive access to the VIP waiting area at the airport. It costs the airline $12 in customer retention costs and $20 in costs to serve each customer. Over time, 30% of airline customers churn from VIP status from one year to the next. Assume an interest rate of 10%. What is the Customer Lifetime Value of a VIP airline customer? $784 $176 None of the above 8 pts $168 Question 3 Each airline customer spends $480 per year to receive access to the VIP waiting area at the airport. It costs the airline $12 in customer retention costs and $20 in costs to serve each customer. Over time, 30% of airline customers churn from VIP status from one year to the next. Assume an interest rate of 10%. What is the Customer Lifetime Value of a VIP airline customer? $784 $176 None of the above 8 pts $168 Question 3 Each airline customer spends $480 per year to receive access to the VIP waiting area at the airport. It costs the airline $12 in customer retention costs and $20 in costs to serve each customer. Over time, 30% of airline customers churn from VIP status from one year to the next. Assume an interest rate of 10%. What is the Customer Lifetime Value of a VIP airline customer? $784 $176 None of the above 8 pts $168 Question 3 Each airline customer spends $480 per year to receive access to the VIP waiting area at the airport. It costs the airline $12 in customer retention costs and $20 in costs to serve each customer. Over time, 30% of airline customers churn from VIP status from one year to the next. Assume an interest rate of 10%. What is the Customer Lifetime Value of a VIP airline customer? $784 $176 None of the above 8 pts $168

Answer rating: 100% (QA)

To calculate the Customer Lifetime Value CLV of a VIP airline customer we need to consider the reven... View the full answer