Illustrate what is the average value of a loyal customer

Assignment Help Business Economics

Reference no: EM1351938

Illustrate what is the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $50 per visit, the frequency of repurchase is 12 times per year, the contribution margin is 10 percent, and the average customer defection rate is 25 percent? If a continuous improvement goal is set of a 20 percent defection rate next year and 15 percent two years from now, what are the revised VLCs over their average buying life?

Reference no: EM1351938

Questions Cloud

Consumer behavior problem : How would you explain the fact that, although no two individuals have identical personalities, personality is sometimes used in consumer research to identify distinct and sizeable market segments?

Different theoretical perspectives : Distinguish between these theoretical perspectives: behaviorist, nativist, cognitive developmentalist, and interactionist (be specific).

Find the yield to maturity : Determine the value of a $1,000 par value bond with annual payments and also find the yield to maturity.

What are the strengths of the brand : Corporate & Legal Affairs Director to evaluate how the Tesco brand is perceived from the perspective of one an investor.

Illustrate what is the average value of a loyal customer : Illustrate what is the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $50 per visit, the frequency of repurchase is 12 times per year.

Explain a dietician wants to design a breakfast : Explain A dietician wants to design a breakfast menu for certain hospital patients. Identify the decision variable and Write down the objective function

Bandwidth of mbps ethernet link if signal-to-noise ratio : Using the frequency definition of bandwidth, what should the bandwidth of 10 Mbps Ethernet link be if the signal-to-noise ratio is 20 dB?

Middle childhood to adolescence : Determine the positive and negative impact of peers and changes in peer relations from middle childhood to adolescence.

Hospitals communitys behavior : Hypothetically how could it open the door to implement some changes i.e. uniformity of service delivery and customer experience for both you offices?

User Account

All Pages