Exam 5: Customer Relationships and Customer Service

Pipe manufacturer Goodmonth sells corrugated iron pipes to plumbing companies at the Northeast Ohio region. Recently, Goodmonth initiated ranking their customers based on their expected lifetime probability for Goodmonth's various customer relationship initiatives. Two of their customers are shown below. -Based on the calculation of lifetime value in Questions 32 and 33, which customer is more important?

(Multiple Choice)

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Question 21

-Using a discount rate of 11% and treating the average annual sales as annuities, calculate the present value of Customer B's lifetime value.

(Multiple Choice)

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Question 22

Pipe manufacturer Goodmonth sells corrugated iron pipes to plumbing companies at the Northeast Ohio region. Recently, Goodmonth initiated ranking their customers based on their expected lifetime probability for Goodmonth's various customer relationship initiatives. Two of their customers are shown below. -Based on the calculation of lifetime value in Questions 29 and 30, which customer is more important?

(Multiple Choice)

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Question 23

-Using a discount rate of 15% and treating the average annual sales as annuities, calculate the present value of Customer One's lifetime value.

(Multiple Choice)

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Question 24

Lafayette Landscaping Company sells mulch to local businesses and residential customers. Lafayette has decided to begin calculating the expected lifetime profitability of each of their premier customers in order to design marketing promotions. Their top-three customers have the following characteristics: -Based on the calculation of lifetime value in Questions 39, 40, and 41, which customer should be preferred?

(Multiple Choice)

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Question 25

Find out the customer lifetime value using the following information and a discount rate of 16%. Average Annual Sales = $39,000 (treat the average sales as annuity) Average Profit Margin = 11% Expected Lifetime in Years = 8

(Multiple Choice)

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Question 26

Pipe manufacturer Goodmonth sells corrugated iron pipes to plumbing companies at the Northeast Ohio region. Recently, Goodmonth initiated ranking their customers based on their expected lifetime probability for Goodmonth's various customer relationship initiatives. Two of their customers are shown below. -Using a discount rate of 8% and treating the average annual sales as annuities, calculate the present value of AfterAll's lifetime value.

(Multiple Choice)

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Question 27

Pipe manufacturer Goodmonth sells corrugated iron pipes to plumbing companies at the Northeast Ohio region. Recently, Goodmonth initiated ranking their customers based on their expected lifetime probability for Goodmonth's various customer relationship initiatives. Two of their customers are shown below. -Using a discount rate of 11% and treating the average annual sales as annuities, calculate the present value of AfterAll's lifetime value.

(Multiple Choice)

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Question 28

Lafayette Landscaping Company sells mulch to local businesses and residential customers. Lafayette has decided to begin calculating the expected lifetime profitability of each of their premier customers in order to design marketing promotions. Their top-three customers have the following characteristics: -Using a discount rate of 16% and treating the average annual sales as annuities, calculate the present value of Rubicon's lifetime value.

(Multiple Choice)

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Question 29

Find out the customer lifetime value using the following information and a discount rate of 7%. Average Annual Sales = $23,000 (treat the average sales as annuity) Average Profit Margin = 18% Expected Lifetime in Years = 15

(Multiple Choice)

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Question 30

-Using a discount rate of 7% and treating the average annual sales as annuities, calculate the present value of Customer One's lifetime value.

(Multiple Choice)

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Question 31

Pipe manufacturer Goodmonth sells corrugated iron pipes to plumbing companies at the Northeast Ohio region. Recently, Goodmonth initiated ranking their customers based on their expected lifetime probability for Goodmonth's various customer relationship initiatives. Two of their customers are shown below. -Using a discount rate of 14% and treating the average annual sales as annuities, calculate the present value of AfterAll's lifetime value.

(Multiple Choice)

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Question 32

Lafayette Landscaping Company sells mulch to local businesses and residential customers. Lafayette has decided to begin calculating the expected lifetime profitability of each of their premier customers in order to design marketing promotions. Their top-three customers have the following characteristics: -Using a discount rate of 13% and treating the average annual sales as annuities, calculate the present value of Rubicon's lifetime value.

(Multiple Choice)

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(43)

Question 33

Lafayette Landscaping Company sells mulch to local businesses and residential customers. Lafayette has decided to begin calculating the expected lifetime profitability of each of their premier customers in order to design marketing promotions. Their top-three customers have the following characteristics: -Using a discount rate of 16% and treating the average annual sales as annuities, calculate the present value of Symbiosis's lifetime value.

(Multiple Choice)

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Question 34

Find out the customer lifetime value using the following information and a discount rate of 14%. Average Annual Sales = $55,000 (treat the average sales as annuity) Average Profit Margin = 7% Expected Lifetime in Years = 10

(Multiple Choice)

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Question 35

Find out the customer lifetime value using the following information and a discount rate of 13%. Average Annual Sales = $225,000 (treat the average sales as annuity) Average Profit Margin = 12% Expected Lifetime in Years = 16

(Multiple Choice)

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Question 36

Find out the customer lifetime value using the following information and a discount rate of 8%. Average Annual Sales = $4,000 (treat the average sales as annuity) Average Profit Margin = 12% Expected Lifetime in Years = 11

(Multiple Choice)

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Question 37

Find out the customer lifetime value using the following information and a discount rate of 10%. Average Annual Sales = $82,500 (treat the average sales as annuity) Average Profit Margin = 14% Expected Lifetime in Years = 17

(Multiple Choice)

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Question 38

Pipe manufacturer Goodmonth sells corrugated iron pipes to plumbing companies at the Northeast Ohio region. Recently, Goodmonth initiated ranking their customers based on their expected lifetime probability for Goodmonth's various customer relationship initiatives. Two of their customers are shown below. -Using a discount rate of 8% and treating the average annual sales as annuities, calculate the present value of NoWorries' lifetime value.

(Multiple Choice)

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Question 39

-Using a discount rate of 7% and treating the average annual sales as annuities, calculate the present value of Customer Two's lifetime value.

(Multiple Choice)

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(39)

Question 40

Showing 21 - 40 of 50

-Using a discount rate of 11% and treating the average annual sales as annuities, calculate the present value of Customer B's lifetime value.

-Using a discount rate of 15% and treating the average annual sales as annuities, calculate the present value of Customer One's lifetime value.

Find out the customer lifetime value using the following information and a discount rate of 16%. Average Annual Sales = $39,000 (treat the average sales as annuity) Average Profit Margin = 11% Expected Lifetime in Years = 8

Find out the customer lifetime value using the following information and a discount rate of 7%. Average Annual Sales = $23,000 (treat the average sales as annuity) Average Profit Margin = 18% Expected Lifetime in Years = 15

-Using a discount rate of 7% and treating the average annual sales as annuities, calculate the present value of Customer One's lifetime value.

Find out the customer lifetime value using the following information and a discount rate of 14%. Average Annual Sales = $55,000 (treat the average sales as annuity) Average Profit Margin = 7% Expected Lifetime in Years = 10

Find out the customer lifetime value using the following information and a discount rate of 13%. Average Annual Sales = $225,000 (treat the average sales as annuity) Average Profit Margin = 12% Expected Lifetime in Years = 16

Find out the customer lifetime value using the following information and a discount rate of 8%. Average Annual Sales = $4,000 (treat the average sales as annuity) Average Profit Margin = 12% Expected Lifetime in Years = 11

Find out the customer lifetime value using the following information and a discount rate of 10%. Average Annual Sales = $82,500 (treat the average sales as annuity) Average Profit Margin = 14% Expected Lifetime in Years = 17

-Using a discount rate of 7% and treating the average annual sales as annuities, calculate the present value of Customer Two's lifetime value.

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