Discount Test : 
91 120 Day Recency Segment

Customer Sample 1000 1000 1000 1000
Discount Offer 5% 10% 15% 20%
Response Rate 2% 4% 6% 8%
Responders 20 40 60 80
Average Price $80 $80 $80 $80
Totals Sales $1,600 $3,200 $4,800 $6,400
Gross Margin 30% 30% 30% 30%
Gross Profit $480 $960 $1,440 $1,920
Discount Cost $80 $320 $720 $1,280
Net Profit Before
Media Expense
$400 $640 $720 $640

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