IT and Customer Relationship Management Essay

Read the Harvard Business School font for Maru Batting Center, KEL688. The optional technological note, Using Customer Relationship Management to Analyze the Lifetime Value of a Customer KEL695, can also help walk through the exercises. The data in Excel format is available for download in the course package, KEL691. Answer the questions below based on only information presented in the case and your understanding of the case.You may answer the questions in either essay or bullet points form. Be concise and substantiate your answers with logical arguments and flow of thoughts. Question 1What is the customer acquisition cost for Maru Batting Center (MBC) for the following(a) customers?a) A Little Leaguerb) A Summer plodderc) An Elite Ballplayer if MBC places the ad in the local baseball enthusiasts magazined) An Elite Ballplayer if MBC purchases the distinguish and invites all target customers to the gala evente) An merriment SeekerQuestion 2Without discounting specie flows to take into account the time value of money, how soon go out MBC break even on the following customers?a) A Little Leaguerb) A Summer Sluggerc) An Elite Ballplayer if MBC places the ad in the local baseball enthusiasts magazined) An Elite Ballplayer if MBC purchases the List and invites all target customers to the gala evente) An Entertainment SeekerQuestion 3Taking into account the time value of money and assuming that 100 percent of a customer segment forget have experienced attrition once the net presentvalue of annual profits per customer falls below 100, what is the lifetime value to MBC of the following customers?a) A Little Leaguerb) A Summer Sluggerc) An Elite Ballplayer if MBC places the ad in the local baseball enthusiasts magazined) An Elite Ballplayer if MBC purchases the List and invites all target customers to the gala evente) An Entertainment SeekerQuestion 4Little League representatives have approached MBC from the nearby Chiyoda ward who are impatient to gain the jersey subsidy the Minato ward has enjoyed due to the companys sponsorship. Because the parents of Chiyoda Little Leaguers will have to travel a greater distance, Maru believes there will be a lower response rate (8 percent) and a lower retention rate (65 percent), which she can make up for by purchasing jolly lowerquality jerseys, reducing the cost of sponsorship to just 600 per player. However, the Chiyoda ward representatives demand that theirs be the only ward receiving such a sponsorship, which means MBC must choose between the both wards. The Chiyoda representatives argue that because their ward has twice the number of Little League customers, it is more attractive than the Minato ward. Should MBC pursue the Chiyoda ward sponsorship? Explain your reasoning.