Question.2073 - Consider the lifetime value of customers (CLV). Choose a business and show how you would develop aquantitative formulation that captures the concept. How would that business change if it embracedcustomer equity and maximized CLV?Expand on this concept because marketers increasingly develop sophisticated programs tailored tospecific target market segments. These targeted programs maximize customer equity and lifetime valueand attempt to be relevant to particular consumer groups. However, these efforts are also exploitativeand take advantage of vulnerable customers.An example is the preponderance of marketing of cigarettes, alcohol, and other vices in low-incomeareas. Do you think that such effective target marketing programs are a positive or an unfavorabletrend?Module 3 Assignment Instructions:Describe your example of an effective CLVDevelop your position on tailoring specific target market segmentsSupport your ideas with data and reputable references.Please post your initial response by 11:59 PM on Thursday. After your posting, please engage in coproduction for this discussion topic. Provide comments on the posts of at least two classmates by 11:593/28/24, 2:22 PMTopic: Module 3: Assignment - Targeting customers and market precision - Discussion Group 3https://canvas.uncp.edu/groups/16747/discussion_topics/4609102/5PM on Sunday. Active engagement is necessary for learning. Share knowledge gained and any sourcesand information you can contribute to the discussion.Rubric:The discussion assignments have a rubric. To view the evaluation criteria, click on the three dots on thetop right of this page, as shown in the screenshot below.Human Reasoning versus Artificial IntelligenceNotice: The following material is not a course requirement. I am providing it to observe the current stateof Artificial Intelligence (AI) tools for marketing and decision-making.Spoiler alert: If you were to put the assignment prompt in ChatGPT, it would not give you a good answer.AI-generated text often includes incorrect facts and does not include the detailed data and information(with sources) required for these answers.The ChatGPT 3.5 module 3 assignment is copied and pasted below. I am including two parts of thisassignment to show that your "human" contribution should be better than a machine's. There is agrammar error that can be overlooked, but note that the Chat GPT contribution needs references andneeds to address the rubric components fully. Both of these elements are essential requirements foryour contributions. Perhaps the problem with the simple answers to the questions is that I did not informChatGPT of the evaluation criteria and rubric. However, this can be incorporated into the prompt the nexttime!3/28/24, 2:22 PMTopic: Module 3: Assignment - Targeting customers and market precision - Discussion Group 3https://canvas.uncp.edu/groups/16747/discussion_topics/4609103/5Consider the lifetime value of customers (CLV). Choose a business and show how you would goabout developing a quantitative formulation that captures the concept. How would that businesschange if they totally embraced the customer equity concept and maximized CLV?One example of a business that could benefit from a focus on customer lifetime value(CLV) is an online clothing retailer. Here's how I would develop a quantitativeformulation for CLV:Calculate the average purchase value: Determine the average amount that a customerspends on each purchase, including the cost of the items as well as any associatedfees, such as shipping and handling.Calculate the purchase frequency rate: Determine how often customers makepurchases. This can be calculated by dividing the total number of orders by the totalnumber of unique customers.Calculate the customer value: Multiply the average purchase value by the purchasefrequency rate to determine the average customer value.Calculate the customer lifespan: Determine the average amount of time that a customerremains active with the company. This can be calculated by dividing the total number ofmonths that customers have been active by the total number of unique customers.Calculate the CLV: Multiply the customer value by the customer lifespan to determinethe customer lifetime value.If the company were to fully embrace the customer equity concept and maximize CLV,they would focus on building strong, long-lasting relationships with their customers. Thiscould include initiatives such as:Offering personalized recommendations: The company could use data analytics toprovide personalized product recommendations based on a customer's previouspurchases and preferences, which would increase the likelihood of repeat purchases.Providing exceptional customer service: By offering excellent customer service, thecompany could build a positive reputation and increase customer loyalty.Implementing loyalty programs: The company could offer loyalty programs that rewardcustomers for their repeat business, such as discounts, free shipping, or exclusiveaccess to new products.3/28/24, 2:22 PMTopic: Module 3: Assignment - Targeting customers and market precision - Discussion Group 3https://canvas.uncp.edu/groups/16747/discussion_topics/4609104/5Improving the customer experience: The company could invest in improving the overallcustomer experience, such as by offering easy-to-use online ordering and returnprocesses, fast shipping, and clear and accurate product descriptions.By focusing on maximizing CLV through these and other initiatives, the company couldnot only increase revenue from repeat business but also build a loyal customer basethat would be more likely to refer others to the company, further increasing its customerequity.Question: Expand on this concept because marketers are increasingly developingsophisticated programs tailored to certain target market segments. These programsmaximize customer equity and lifetime value and are an attempt to be relevant to certainconsumer groups. However, these efforts are also exploitative and take advantage ofvulnerable customers. For example, the preponderance of marketing of cigarettes, alcohol,and other vices in low-income areas. Do you think that such effective target marketingprograms are a positive or an unfavorable trend?Effective target marketing programs can be both positive and unfavorable, dependingon how they are used. On the one hand, targeted marketing programs can helpbusinesses better understand and serve the needs of specific consumer groups, whichcan increase customer satisfaction and loyalty. By tailoring marketing efforts to specificmarket segments, businesses can deliver more relevant messages and productofferings that resonate with consumers and meet their unique needs.However, there is also a darker side to targeted marketing programs, especially whenthey are used to exploit vulnerable customers. As you mentioned, the marketing ofvices like cigarettes and alcohol in low-income areas can be seen as exploitative, asthese populations may be more susceptible to addiction and other negative healthoutcomes. Similarly, targeted marketing of high-interest loans or other financialproducts to individuals with poor credit can take advantage of their financialvulnerabilities and trap them in a cycle of debt.In addition, targeted marketing programs can also reinforce existing social inequalitiesand stereotypes. For example, if a business only markets their products to certain racialor ethnic groups, it can perpetuate harmful stereotypes and further marginalize thesepopulations.Therefore, it is important to consider the ethical implications of targeted marketingprograms and ensure that they are not being used to exploit or harm vulnerable3/28/24, 2:22 PMTopic: Module 3: Assignment - Targeting customers and market precision - Discussion Group 3https://canvas.uncp.edu/groups/16747/discussion_topics/4609105/5? Reply? AttachReplies are only visible to those who have posted at least one reply.populations. Marketers and businesses should be mindful of their impact on society andwork to develop marketing strategies that are both effective and ethical. This mayinclude setting responsible marketing guidelines and incorporating social responsibilityinto their marketing strategies. Ultimately, the goal should be to create marketingprograms that maximize customer equity and lifetime value while also contributing to amore equitable and just society.

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