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What is her CLV to Adidas

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Question - Adidas estimates that it can persuade Ms. Consumer to start using Adidas shoes, and to continue purchasing Adidas shoes for the next three years, with likelihood decreasing by 10% (100%, 90%, 80%, etc.). Marketing activities to get her to start using Adidas shoes are estimated at $50, and she is expected to spend $100 on a pair of Adidas shoes every year, with the variable costs for each pair of shoes being $40. Using a discount rate of 15%, what is her CLV to Adidas?

Reference no: EM132482931

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