flyer 5 per unit 100 potential customers Rs.

500
response rate 1% Thus 1 acquired customer cost Rs. 500
MR Firm 2 per name 100 potential customers 700
resposne rate 4% Thus 1 acquired customer cost 175

H type 1 2
After one year one customer gener 200 200
Cost of flyers 60 60
Actual Profit 140 140
Customer Lifetime Value 127.27 86.77686
Acquisition cost 175

L type 1 2
After one year one customer gener 160 200
Cost of flyers 60 20
Actual Profit 100 180
Present value 90.909 111.5702
Acquisition cost 175
 3 4 5
200 200 200
60 60 60
140 140 140
59.16604 40.34048 27.50487

3 4 5
200 200 200
20 20 20
180 180 180
76.07062 51.86633 35.36341