Susan works for Groceries To You, a new firm specializing in home delivery of high quality food and wines. She thinks that she n
eeds to get the word out to as many consumers a possible, but that their marketing message is simple and easy to understand. What ad metric should she focus on?
Interaction rate (participation) = number of actions in our publications (sum of comments, likes, recommendations, clicks, shares ...) / users reached * 100
Explanation:
Interaction Rate for a Post
For a post, the interaction rate is relatively simple: it's the number of interactions (e.g. reactions, comments, shares), accounting for weights (e.g. if you give shares 3x the weight, they get 3x the interactions), divided by the account size (followers/page likes) at the time of posting.
The easiest way to calculate the present value of an investment is to use an excel spreadsheet and the present value function =NPV(discount rate, series of cash flow). The first nine cash flows equal 12,000 and the tenth cash flow equals 17,000.
After you calculate the present value in excel, you must subtract the investment amount to determine the net present value.
NPV = $82,837 - $50,000 = $32,837 (the answer varies by $2 probably because of rounding percentages)
The three markets will have different characteristics which will cause the competition. The Gasoline market has standardized product and the customers are price takers. Usually the prices are fixed for the products and there is no bargaining.
