Question

A company adopts an advertising campaign to weekly add to its customer base. It assumes that as an average fifty percent of its new customers, those added the previous week, will bring in one friend, but those who have been customers longer will not be very effective as recruiters and can be discounted. A media campaign brings in 10,000 customers initially. What is the expected total number of customers with whom the company can expect to have dealings

Answer 1

20,000 customers

Step-by-step explanation:

The campaign initially brought in 10,000 new customers. These 10,000 customers should bring 5,000 more. Then these 5,00 should bring 2,500 more customers and so on. in order to solve this question, we can calculate a customer multiplier = 1 / % of customers who bring additional new customers = 1 / 50% = 2

the total number of new customers = 10,000 x 2 = 20,000