Question: Question 2 : George's Market is interested in developing an application to facilitate in - store pickup options. Currently, the average customer visits their stores
Question : George's Market is interested in developing an application to facilitate instore pickup options. Currently, the average customer visits their stores times per year. An independent research study found that customers who shop via a mobile application shop more frequently but spend less per trip on average compared to instore shoppers. Based on this, they have estimated the adoption rate for existing customers and the impact to customer spending habits below. Please:
A Calculate the average annual spend per customer for online vs instore purchases.
B Calculate the total annual revenue with and without the mobile app.
Exhibit Existing Customers
Question : Below is the cost structure for George's Market as well as data on new customer trends. Assume that the application will require one year to develop and won't be ready to roll out to customers before the beginning of the second year. Please calculate the number of new customers needed to breakeven by the end of the second year.
Exhibit a: Existing Cost Structure
Exhibit b: Application Related Cost Structure
Exhibit c: New Customers
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