The Gabriel Hansen Foundation (lifetime value)
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The Gabriel Hansen Foundation is a nonprofit organization whose mission is to raise money to finance the Gabriel Hansen Institute’s research activities. After a few years of rapid growth, the amount of funds the Institute was able to raise flattened out, while the Institute’s needs continued to grow. To save some expense, management wants to discontinue the donor acquisition campaign next year. The student must use lifetime value to determine if this is a reasonable cost savings option or if the lifetime value of the new donor outweighs the savings.
A case study is deemed managerially complex when its solution is ambiguous, unclear, or requires extensive judgment calls; it is best suited for advanced students or executive education settings.
A case study is deemed technically complex when its solution requires extensive data manipulation, or when it requires to juggle with more than one marketing model.
Some case studies depict historical problems taking place decades ago. While graduate students and executive education participants have no problem with these cases, undergraduate students might find them dated.
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