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15 Jan 2025, 07:00
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Dropdown 1: Campaign A
Dropdown 2: 5
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
86% (01:38) correct
14%
(01:58)
wrong
based on 187
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IMPROVED VERSION OF THIS QUESTRION IS HERE: https://gmatclub.com/forum/the-two-bar- ... 43815.html
A marketing agency ran five test advertising campaigns on behalf of a client for a period of 6 months. The ratio of Lifetime Value to Acquisition Cost is the primary metric used to gauge the success of a campaign.
From each drop-down menu, select the options that create the most accurate statement according to the information provided.
Assuming that each of the campaigns had an equal number of customers, the campaign with the highest Lifetime Value to Acquisition Cost is with an approximate value of .
download (2).png [ 31.78 KiB | Viewed 1800 times ]
A marketing agency ran five test advertising campaigns on behalf of a client for a period of 6 months. The ratio of Lifetime Value to Acquisition Cost is the primary metric used to gauge the success of a campaign.
From each drop-down menu, select the options that create the most accurate statement according to the information provided.
Assuming that each of the campaigns had an equal number of customers, the campaign with the highest Lifetime Value to Acquisition Cost is with an approximate value of .
Attachment:
download (2).png [ 31.78 KiB | Viewed 1800 times ]
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Official Answer
Dropdown 1: Campaign A
Dropdown 2: 5
16 Jan 2025, 00:35
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The Lifetime value (LV) to Acquisition cost (AC) is the metric that we need to look at.
Following are the approx LV/AC values for different campaigns:
Camp. A: 110/20 = 5.5
Camp. B: 160/60 = 2.67
Camp. C: 60/30 = 2
Camp. D: 325/100 = 3.25
Camp. E: 200/150 = 1.3
The question is asking for the highest ratio of LV/AC, from our analysis we know that it's Campaign A with the highest ratio of 5.5 which is approximately 5.
Hope this helps.
Following are the approx LV/AC values for different campaigns:
Camp. A: 110/20 = 5.5
Camp. B: 160/60 = 2.67
Camp. C: 60/30 = 2
Camp. D: 325/100 = 3.25
Camp. E: 200/150 = 1.3
The question is asking for the highest ratio of LV/AC, from our analysis we know that it's Campaign A with the highest ratio of 5.5 which is approximately 5.
Hope this helps.
16 Jan 2025, 07:00
Kudos
Bookmarks
1. The question asks us to find which campaign has the highest ratio Lifetime Value to Acquisition Cost and it's value.
2. Let's calculate this ratio for all 5 campaigns.
- Campaign A. \(\frac{Lifetime \ Value}{Acquisition \ Cost} = \frac{110}{20} = 5.5\).
- Campaign B. \(\frac{Lifetime \ Value}{Acquisition \ Cost} = \frac{160}{60} \approx 2.67\).
- Campaign C. \(\frac{Lifetime \ Value}{Acquisition \ Cost} = \frac{50}{30} \approx 1.67\).
- Campaign D. \(\frac{Lifetime \ Value}{Acquisition \ Cost} = \frac{325}{100} = 3.25\).
- Campaign E. \(\frac{Lifetime \ Value}{Acquisition \ Cost} = \frac{200}{150} \approx 1.33\).
3. Campaign A has the largest ratio with a value equivalent to 5.5, which is closest the answer choice 5.
4. Our answer will be: D1 - Campaign A and D2 - 5.
2. Let's calculate this ratio for all 5 campaigns.
- Campaign A. \(\frac{Lifetime \ Value}{Acquisition \ Cost} = \frac{110}{20} = 5.5\).
- Campaign B. \(\frac{Lifetime \ Value}{Acquisition \ Cost} = \frac{160}{60} \approx 2.67\).
- Campaign C. \(\frac{Lifetime \ Value}{Acquisition \ Cost} = \frac{50}{30} \approx 1.67\).
- Campaign D. \(\frac{Lifetime \ Value}{Acquisition \ Cost} = \frac{325}{100} = 3.25\).
- Campaign E. \(\frac{Lifetime \ Value}{Acquisition \ Cost} = \frac{200}{150} \approx 1.33\).
3. Campaign A has the largest ratio with a value equivalent to 5.5, which is closest the answer choice 5.
4. Our answer will be: D1 - Campaign A and D2 - 5.
