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Cap One is usually collects default accts by calling these customers. Usually 15% of customers pay their accounts off. Now, they are consdering giving an offer to the customers for paying 60% amount. Should we do that or not. Abg balance is $2000. This offer will impact now, that only 10% customers will pay in full and 10% will pay 60% offer. part(b)- since we are stealing our own customers by giving an offer, what is the cannibalization rate? and what is the max. cannibalization rate that Capital One can do to break even?
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Senior Business Analyst

Interviewed at Capital One

4.7★
Dec 5, 2011

Cap One is usually collects default accts by calling these customers. Usually 15% of customers pay their accounts off. Now, they are consdering giving an offer to the customers for paying 60% amount. Should we do that or not. Abg balance is $2000. This offer will impact now, that only 10% customers will pay in full and 10% will pay 60% offer. part(b)- since we are stealing our own customers by giving an offer, what is the cannibalization rate? and what is the max. cannibalization rate that Capital One can do to break even?

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