Question: marketing model Consider a scenario where a customer generates margin m, for each period t, the discount rate is i and the retention rate, r

marketing model

marketing model Consider a scenario where a

Consider a scenario where a customer generates margin m, for each period t, the discount rate is i and the retention rate, r is 100%. The lifetime value of this customer is r r miti--) Calculate 1+i-r given by LV = m with margin multiple is equal to m= 1+i-r the constant margin of lifetime value of the customer when: i) = 60%, i = 16% ii) r = 90%, i = 14% iii) r = 70%, i = 12% r (6 marks)

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