Question: Return to the Worked Example in this chapter. After conducting market research we have found that the possibility of a customer in the top 5

Return to the Worked Example in this chapter. After conducting market research we have found that the possibility of a customer in the top 5 per cent group switching to a competitor is 0.85 if we do not offer a price discount and 0.15 if we do. Consider how you could use this information to determine the appropriate level of the price rebate to be offered.

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