Assignment Instructions Solution should include Just numbers without any explanation And and then couple of questions have answer choices so just choose the right letter This is an assignment that

will include 5 readings in total before you answer any questions. There are 4 readings attached. Ans one more mandatory reading: https://hbr.org/2017/04/what-most-companies-miss-about-customer-lifetime-value It is important to reads the assignments references first so the 4 attached and 1 URL link, before proceeding to the questions./n Question 1 Maru has two options for acquiring Elite Ballplayers, shown in Table 1 of the assignment. One is to place an ad in the local baseball enthusiasts magazine, and the other is to purchase a mailing list and invite all target customers to a gala event. Each option affects acquisition cost. What is the acquisition cost of the first option – placing the ad? Question 2 (See above) What is the acquisition cost of the second option - holding the gala? Question 3 Taking into account the time value of money and assuming that the last year in which profits are significant is the year in which the net present value of annual profits falls below ¥100, what is the Customer Lifetime Value (CLV) to MBC of a Little Leaguer? For simplicity in calculating PV, discounting should begin in Year 2, and assume all cashflows occur on the last day of each year. Question 4 What is the CLV of a Summer Slugger? Question 5 What is the CLV of an Entertainment Seeker? Question 6 MBC has been approached by Little League representatives from the nearby Chiyoda ward who are eager to gain the jersey subsidy the Minato ward has enjoyed due to the company's sponsorship. Because the parents of Chiyoda Little Leaguers will have to travel a greater distance, Maru believes there will be a lower retention rate (65 percent), which she can make up for by purchasing slightly lower-quality jerseys, reducing the cost of acquiring a player/customer to just ¥6,000 per player. However, the Chiyoda ward representatives demand that theirs be the only ward receiving such a sponsorship, which means MBC must choose between the two wards. What is the CLV of a Little Leaguer if MBC pursues the Chiyoda district? Question 7 (See above) Maru believes she can acquire twice as many Little Leaguers from the Chiyoda ward as she can from Minato. Given this, which ward should she sponsor, if her goal is to maximize her profit? Group of answer choices a. She should sponsor the Minato District, because their CLV is higher b. She should sponsor the Minato District because their retention rate is higher c. She should sponsor the Chiyoda District because their CLV is higher d. She should sponsor the Chiyoda District because the larger number of customers more than makes up for the difference in CLV Question 8 Beyond the revenue consideration, which of the following are intangibles Maru might consider before choosing between the Minato and Chiyoda segments above? Choose all that apply. Group of answer choices a. If MBC has the capacity to accommodate all the Chiyoda Little Leaguers b. If there are any direct competitors to MBC in either district c. If breaking their relationship with Minato could cause other customers from the Minato district to go elsewhere d. If providing a lower cost jersey could have a customer perception branding impact on MBC Question 9 Maru decides to pursue the Elite Ballplayers by holding a gala event as opposed to running the ad. Maru's brother suggests that in addition to holding the gala event she offer a ¥500 per hour discount beginning in Year 2 to any Elite Ballplayer who purchases at least twenty batting cage hours in Year 1. (Note that Maru assumes all Elite Ballplayer customers will book twenty hours each year.) Although this will decrease the amount MBC can bill Elite Ballplayers from ¥7,500 to ¥7,000 per hour beginning in Year 2, Maru believes it will increase the retention rate of these customers from 60 to 75 percent immediately. What would the CLV be if Maru offers the discount? Question 10 Alternatively, Maru has considered ignoring her brother's advice and targeting the Elite Ballplayers segment by attempting to increase the launch party's response rate. Instead of offering customers a discount, MBC would retain their pricing, but each launch party attendee who signs up to become a customer and commits to purchasing twenty batting cage hours would receive a free professional-grade baseball bat with the Yakult Swallows logo. This would cost MBC an additional ¥8,000 for each new Elite Ballplayer customer, but Maru believes it would increase the launch party's invitation response rate from 25 to 29 percent. What would the CLV be if Maru offers this promotion?