Reference no: EM133443006

Notarize an online notarization service is sold on a per use basis or through an annual subscription notarized charges $25 for an authorization. Consider a notarized customer segment interested in notarizing one document per month. Assume the cost borne by notarize for an authorization is $10. Let the monthly discount rate be 0.80%

1. What is the total period price for purchasing a notarization with notarize if the consumer purchases it 12 times per year?

2. For a non-subscribing customer, assume the marketing expenses are allocated such that on average per customer $5 is allocated for acquiring new customers and a $0.50 per month is allocated for retaining existing customers further, let the effective retention rate be 75% between notarizations What is the one year customer period value of a non notarize non subscribing user?

3. For subscribers assume the marketing expenses are allocated such that on average per customer $5 is allocated to acquiring new customers and nothing is spent on retaining existing customers. Furthermore, let the effective retention rate be 100% between notarisation of subscribers. What subscription price would leave the customer period value for a subscription equal to that of a non-subscriber

4. From this analysis alone what range of prices would you expect to see for an annual subscription to notarize.