VJS Construction Services is using a software produced by IBM. In the equation for value of VJS Construction Services as a customer,

==1=1(+)V=t=1nStmtdtt=1n(Dt+Rt)dtA

, what is the effect of $10,000 increase in acquisition cost (A) of VJS on its value?

Even if all other elements are known, it cannot be calculated.

It decreases $10,000.

It does not change.

It increases $10,000.

IBM wants to purchase a digital ad spot after the first quarter of Packers Vs. Texans at NRG stadium, Sun 10/25. The price of the ad is $685,000.

In the equation for value of a company located in Wisconsin (like Great Lakes Roofing Corporation) as a potential customer,

==1=1(+)V=t=1nStmtdtt=1n(Dt+Rt)dtA

, what is the effect of this advertisement on the value of the customer?

It does not change.

The information is not enough for calculating the value of the customer.

It decreases $685,000.

It increases $685,000.

Suppose that there are three market segments in Wisconsin for IBM including segments A, B, and C. Customer equity for these segments is in the following order: (the sign means "far greater than")

>B>AC

For segment C, which strategy cannot be an appropriate one?

Reducing the cost of serving

Change their buying behavior

Demarketing

Invest in customer retention