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November 22, 2004


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Anonymous

7/26/2012 04:12 PM

The customer equity approach optimizes on total long-term contribution and not ROI. Since we are using a diminishing returns to scalemarket response, the next dollar invested in marketing is not as efficient as the last dollar invested. The highest ROI occurs at the first dollar invested in marketing. You may make $0.75 on that dollar but $400,000 on a million is much more appealing.

Anonymous

7/26/2012 04:12 PM

I don't understand the graph. It appears that the current return is better than the optimal return for each media channel. That doesn't seem right.

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