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 2: George's Market is interested in developing an application to facilitate in-store pickup options. Currently, the average customer visits their stores 30 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 in-store 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 in-store purchases.
B. Calculate the total annual revenue with and without the mobile app.
Exhibit 1- Existing Customers
Question 3: 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 2a: Existing Cost Structure
Exhibit 2b: Application Related Cost Structure
Exhibit 2c: New Customers
 Question 2: George's Market is interested in developing an application to

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!