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A firm has identified 3 segments of customers based on their frequency of purchase. Low frequency...

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General Management

A firm has identified 3 segments of customers based on theirfrequency of purchase. Low frequency customers spend on average$100/year on the brand, medium frequency customers spend $380/yearon the brand and high frequency customers spend $500/year on thebrand. A new marketing campaign wants to target convertingcustomers to higher levels of frequency. Based on their budget theyare considering 4 strategies. Which strategy should they pursue ifthey want to increase revenue as much as possible?

a. Convert 20 customers from low to medium frequency
b. Convert 20 customers from medium to high frequency
c. Convert 25 customers from medium to high frequency
d. Convert 15 customers from low to medium frequency

Answer & Explanation Solved by verified expert
4.0 Ratings (616 Votes)
Given values Low frequency customers 100year Medium frequency customers 380year High frequency customers 500year Solution To find the maximum increase in revenue let us    See Answer
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