Belinda’s Lawn Service runs a radio ad during a slot that has 7,500 listeners. It costs her $1295. She anticipates an acquisition rate of 2.5%. She offers a special price for the first lawn mowing that will net her only $8. She expects the CLV of acquired customers to be $335.

1. Now assume she has a third option: run the ad in the middle of the night. The ad would only reach 1,000 customers, it would cost her $179, and her acquisition rate would be 0.35%. What would this PLV be?

2. Which of these three options has the lowest break even acquisition rate?

3. What is the average acquisition cost for #6?

4. What is it for #9?

Answer rating: 100% (QA)

Solution 6 PLV PLV No of Listner X Acquisition Rate X Initial Marg... View the full answer