BEM Name (in full):

PGP Term VI Section:

Assignment 1 Roll/ID #:
Instructor: Dr. Somdeep Chatterjee

Instructions: This is a take-home assignment based on a case analysis. Please write your name,
section and id in the space provided to receive credit. You must be concise with your answers but
at the same time explain all your work. For all math problems you must show work to get credit.
Please try and be legible. I can only grade you based on what I can read. This is not a group
assignment, so everybody must turn in their individual solutions. This assignment is due on
February 10, 2020 at the beginning of class. Please submit hard copies only.

1. (25 points) This assignment is entirely based on the case distributed to you and discussed in
class titled, “Making stickK Stick: The Business of Behavioral Economics”. Please read the
case and answer the questions that follow.
(a) (10 points) Calculate the revenue of stickK.com for the B2C model using the information
provided in the case. Essentially, you should first calculate the total revenue from forfei-
tures in different types of contracts (such as charity, anti-charity, friends etc). Then you
should net out the credit card charges to find a total revenue figure. You may consider
the average amounts (such as average stakes) for your calculations.
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(b) (5 points) Calculate an upper and lower bound for the revenue from the B2B model.

(c) (5 points) Discuss the potential competition and customer retention potential of stickK.com
for both B2C and B2B models.
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(d) (5 points) What do you think are the primary barriers to success for a venture such as
stickK.com?