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Nike is reviewing whether it should buy exclusive rights to advertise on the front page of a social network search engine, Zignet. At the launch of the agreement, Nike is expected to make an upfront payment of $15 million to Zignet. In addition, Nike would spend an average of $15,000 per day on Zignet advertising for a full year. In return, Nike’s brand would be featured exclusively and prominently on many of Zignet’s pages for one year. More specifically, Nike expects to be present on 60% of Zignet’s 50 million pageviews per day. Based on industry estimates, Nike believes 0.25% of every pageview at Zignet would result in a visit to its own website for the entire year of this deal. Nike’s own experience suggests that about 1.0% of the visitors to its site actually buy books and other merchandise. While the typical retention rate for Nike customers is over 90%, management is concerned that customers coming from the Zignet site will have a retention rate of only 70%. The dollar amount of a typical order is $100. Nike’s CFO was concerned that, with a 30% contribution margin per order and 10% cost of capital, this deal may not be worthwhile.
What is your recommendation based on calculated Customer Lifetime Value? Assume customers acquired at the end of the year are worth the same as those at the beginning of the year.
Describe an incident of cognitive dissonance that you (or someone you interview) felt after a significant purchase.
What differentiated leadership would you bring to table to achieve the objective of becoming the No 1 e-commerce company in India too.
Assume the two operations process goals. To provide timely acknowledgement of customer orders. To provide assurance of customer information and payment.
Using this information and the Learning Curve Rule, determine the appropriate learning curve?
Symbolic leadership cultural actions are behaviors, signals, and events that leaders create and enact to develop and reinforce desired cultural values. Each time that a work unit exceeds its quarterly performance goals, their leader hosts the grou..
Digitizing millions of fingerprint cards and connecting law enforcement agencies to the database by 2017 at a total cost of $3 million.
The company you work for has just announced that it intends to sign on 20 new clients each month for the next six months. Communicator Strategy - your communicator strategy needs to include general, action, and communication objectives. Audience Stra..
Select either the experienced personnel or the new hires as your target audience. Using the description appropriate to that audience.
Benji’s Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. Weekly demand is 100 bottles (closed two weeks per year) with a standard deviation of 30 bottles. The wine costs $3 per bottle and is served only in whole bottles beca..
As an executive-level manager, how would you explain what sexual harassment is to your subordinates? As someone who manages mid-level managers in the organization, how would you instill in mid-level managers the importance of being up-to-date on sexu..
You need 3 discussion papers all on both (Team designing and team identity, concentrate more on team designing).
A product is composed of four parts. In order for the product to function properly in a given situation, each of the parts must function. Two of the parts have a .85 probability of functioning, and two have a probability of .97. What is the overall p..
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