Question: bmodel. EML estimates that the response rate for the current customer market is 2 5 % , and the response rate for the new customer

bmodel. EML estimates that the response rate for the current customer market is
25
%
, and the response rate for the new customer market is
20
%
. For the customers who test drive the new model, the sales rate is the percentage of individuals that make a purchase. Marketing research studies indicate that the sales rate is
12
%
for the current customer market and
20
%
for the new customer market. The cost for each promotion, excluding the test drive costs, is $4 for each promotion sent to the current customer market and $6 for each promotion sent to the new customer market. Management also specified that a minimum of 30,000 current customers should test drive the new model and a minimum of 10,000 new customers should test drive the new model. In addition, the number of current customers who test drive the new vehicle must be at least twice the number of new customers who test drive the new vehicle. If the marketing budget, excluding test drive costs, is $1.2 million, how many promotions should be sent to each group of customers in order to maximize total salesmodel. EML estimates that the response rate for the current customer market is
25
%
, and the response rate for the new customer market is
20
%
. For the customers who test drive the new model, the sales rate is the percentage of individuals that make a purchase. Marketing research studies indicate that the sales rate is
12
%
for the current customer market and
20
%
for the new customer market. The cost for each promotion, excluding the test drive costs, is $4 for each promotion sent to the current customer market and $6 for each promotion sent to the new customer market. Management also specified that a minimum of 30,000 current customers should test drive the new model and a minimum of 10,000 new customers should test drive the new model. In addition, the number of current customers who test drive the new vehicle must be at least twice the number of new customers who test drive the new vehicle. If the marketing budget, excluding test drive costs, is $1.2 million, how many promotions should be sent to each group of customers in order to maximize total sales4

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