You Make the Call-Situation 1

question 87

Essay

You Make the Call-Situation 1
Jeremy Shepherd is the founder of PearlParadise.com, in Santa Monica, California. His jewelry business recognizes the importance of ensuring that customers keep them coming back.
However, Shepherd is uncertain as to which customer retention techniques he should use to develop a strong foundation of repeat customers. PearlParadise.com's Web site has the software capabilities to support customer interaction.
(Source: Melissa Campanelli, "Happy Returns," www.entrepreneur.com/mag/article/0,1539,312420,00.htm, January 2004.)

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Definitions:

Bargain Brand Noodles

Low-cost noodle brands that offer savings compared to mainstream or premium brands without compromising much on quality.

Responsiveness

The ability of a system or organization to react quickly and positively to changes or requests.

Quantity

The amount or number of a material or immaterial good that is considered disposable or usable.

Income Elasticity of Demand

Income elasticity of demand measures how the quantity demanded of a good or service changes in response to a change in consumers' income.