Answer Happy

Many firms seek to optimize profitability, revenue and customer satisfaction by focusing on Customer Lifetime Value. What would be the impact on the average CLV for a subscription-based service like Netflix in each of the following scenarios? Assume all other inputs remain the same. *Slide 10 in the PowerPoint for Week 2 (which I uploaded in the module) will be helpful. I know this formula looks scary but try to see beyond the numbers. Use logic: what happens to profitability when COSTS increase for example? Variable costs increase, but prices do not [Select] The discount rate used increases [Select] Margin and the retention rate both increase [Select] Margin decreases, and the retention rate increase [Select] The cost to acquire new customers increases [Select] A discount for loyal customers increases the retention rate [Select]

[Select] Increase Decrease The discount rate used increases [Sele Unknown impact No change Margin and the retention rate both increase [Select] Variable costs increase, but prices do no Margin decreases, and the retention rate increase [Select] The cost to acquire new customers increases Select] A discount for loyal customers increases the retention rate [Select