- Less Additional Marketing Cost per Customer^b Less data management and analytics fee per customer^c

- Co-Branding payment to airline for advertsing fee of $8.00 (flat) per per customer^e

ExPLAIN THE CALCULATION - HOW TO GET $8.96 ON THE CASE STUDY OF ROSEWOOD.

^b $1 million growing at 3% per year allocated to 115,000+10,000 ^cEach customer costs a $12 data management fee increasing at 4% per year ^dManagement later realized that customer acquisition would actually be $125 instead of $150 ^e Rosewood launched a a cobranded inflight advertsing campaign with Delta Air costing $8 per customer ^f For simplicity of analysis we assume that the custmer was acquired the last day of 2003, therefore no costs are attributed to 2003