Amazon prime as the shopper loyalty program

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Reference no: EM132147347

Amazon is thinking about using Amazon Prime as the shopper loyalty program for Whole Foods featuring discounts and incentives for purchases. By introducing the program, Amazon projects they will reduce the NPV of average customer lifetime margin to $2,050 but increase retention to 72%. Assuming the same discount rate (10%), should they implement the program? Why

Reference no: EM132147347

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