Question

Minh’s data shows that on average only 4.6% of customers were purchasing complementary services available within Media Systems. By using his company’s services, Minh was projecting that these percentages would triple across all user groups within 1 year. a) How many customers would that equate to in total for each group? b) What would be the difference compared to current levels?

Answer 1

you didn't provide enough information for us to complete the question dude @MickRose

Answer 2

The company has 70,000 publications subscribers, 58,000 advertisers, 30,000 telephone services customers, and 18,000 Internet service provider customers.
What percentage of the total does each of the four customer groups represent? Round to the nearest hundredth of a percent.

Answer 3

1. Total customers is the sum of publication subscribers (70,000), advertisers (58,000), telephone service customers (30,000) and ISP customers (18,000). Total customers is 176,000. The percentage of each is as follows: publication subscribers are 39.77%, advertisers are 32.95%, telephone service customers are 17.05% and ISP customers are 10.23%.

2. I am assuming that Minh is trying to pitch a business model and trying to get the company to use his product to increase profit margin. If that's what he is doing, he needs to not only be mindful of what percentage of each user group is purchasing complementary services, he also needs to look at the profit margins for each type of complementary services purchased.

If Minh's data shows that only 4.6% of customers are purchasing complementary services within Media Systems this would equate to 4.6% of each group. So, approximately 3,220 of the publication subscribers, 2,668 of the advertisers, 1,380 of the telephone service customers and 828 of the ISP customers are purchasing complementary services.

Minh projects that his company could triple these percentages within one year. This means that instead of the users listed above, the company would now be looking at 9,960 publication subscribers, 8,004 advertisers, 4,140 telephone service customers and 2,484 ISP customers now purchasing complementary services. That is an increase in customers by 16,192 projected to purchase complementary services as opposed to the 8,096 that were purchasing complementary services according to Minh's research.

If you think about it, what Minh really needs to explore is how much is spent by each sector when they purchase complementary services? I would guess that each of these sectors purchases different types of things when they purchase complementary services. Based on that, Minh shouldn't just strive to increase the complementary purchasing across the board, if Minh is trying to pitch his business to the company, he should find a way to increase the purchasing of complementary services in the sector where complementary services make the GREATEST profit. For example, does an increase in complementary services for publication subscribers mean that they subscribe to an additional product? If so, what is the profit margin average for that additional subscription? For advertisers, does this mean they are purchasing additional advertising space? What kind of space (print, air time, etc.) and what is the profit margin on the additional advertising? Are the telephone service customers purchasing additional products like voice mail or caller ID? What is the profit margin on these services? You see where I am going with this line of questions. For Minh to really increase profits for the company, he should find the greatest profit margin and find ways to increase those customers by more than three times to bring a greater profit to the company.

Answer 4

whoa... too many words there... that's a novel @adoredelano

Answer 5

dang...well, that pretty much explains everything. Thumbs up to you adoredelano :)