Case 4: Conroy’s Acura – Customer Lifetime Value and Return on Marketing
Suppose Conroy’s Acura embarks on an advertising campaign to increase the sales of the CSX, a car with a $2360 markup. De Lima calculates that if the firm spends $20,000, sales of the car to new customers will increase by 10. What is the ROM of the move in net present value (NPV) terms?
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