Jones Blair management is considering focusing on the DFW professional painters. There are 400 professional painters in
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Question:
a. The director of marketing proposes a one-time spending of $500,000 to directly market to painters. How many painters would you need to acquire to make this investment pay off in the long term (assume an infinite horizon)?
b. The marketing director also wants to find out the maximum amount of money he should spend to increase the retention rate of the current professional customers from 75% to 85%
Assume a discount rate of 12%.
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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