## Sollicitatievraag

Sollicitatiegesprek voor de functie Operations Analyst

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# You have the choice between using first class or third class mail for a letter you are sending out to potential customers. First class costs \$0.50 per piece and reach 100% of potential customers. Third class costs \$0.40 per piece and reaches 80% of potential customers. Which do you use?

Antwoord

## Antwoorden op sollicitatievragen

10 antwoorden

12

either one is good. For example, you will reach 0.8 person by spending \$0.4. If divided 0.4 by 0.8, we get that we will reach 1 person by spending \$0.5. So two methods have the same effect.

Peppermint op

6

First class should be used, as the cost of each delivered letter will be the same, but you will reach all of your intended audience. Example: 1000 pieces to be sent, sending first class costs \$500 and reaches 1000 (\$.50 per peice), and sending second class costs \$400 and reaches 800 (\$.50 per piece)

Postal Clerk op

2

@gaurav: don't make it too complicated. they just want to know the costs of reaching the customers. peppermint is right.

rob op

4

peppermint is not right. say you make 1000 dollars off of each customer you reach at probability .5. Assuming you send 1000 letters, first class reaches all 1000 and has total cost 500 dollars. revenue is (1000 customers reached)(.5 prob make 1000 dollars)(1000 dollars) = 500,000 and profit is 500,000-500 = 499,500. third class costs 400 dollars, reaches 800 people, gives revenue of (800)(.5)(1000)= 400,000, profit is 400,000-400=399,600. You can generalize this to a formula to determine which is better given number of letters to be sent, expected money off of customers who accept, and probability that the customers letters reach will accept.

Anoniem op

1

Peppermint is right. Assumption: only when the letter has reached the recipient, he becomes a potential customer. Say they send letters to x people So, Cost per Potential Customer= 0.5/x and 0.4/(0.8x) for respective cases So, cost per potential customer is same in both cases.

Anoniem op

0

The real answer is.... Send the letter through 1st class mail if the price of the product capital one is trying to sell is above \$0.90. If not, send the letter through 3rd class mail. Assumptions:- •Potentially customers = actual customers Sample calculation:- Profit = Revenue - Cost Assume all potential customers = 100 Assume Price = \$1 1st class mail profit = (\$1x100)-(\$0.5x100) = \$50 3rd class mail profit = (\$1x80)-(\$0.4x80) = \$48 Assume Price = \$0.80 1st class mail profit = (\$0.8x100)-(\$0.5x100) = \$30 3rd class mail profit = (\$0.8x80)-(\$0.4x80) = \$32 Assume Price = \$0.90 1st class mail profit = (\$0.9x100)-(\$0.5x100) = \$40 3rd class mail profit = (\$0.9x80)-(\$0.4x80) = \$40

Anoniem op

0

Must also consider response of 3rd class versus 1st class-perception

Anoniem op

0

cost per reached customer is the same in both cases - 50cents (.5/100 or .4/80) however you have to send more letters with 3rd mail to reach the same number of customers. There is a cost associated with printing and handling letters then you'd use 1st class.

John op

4

It provokes you to ask questions. You do not nearly have enough information to perform the analysis. You need to know the present value of each customer, how many mailings, and calculate the point of indifference in terms of how many letters you are sending, etc.

Anoniem op

1

Need to know the Revenue per customer and no of customers before we can decide on either

Gaurav op

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