Calculate the Economic Value of a Loyal Customer for a Company

question 19

Essay

Calculate the economic value of a loyal customer for a company given that the customer purchases, on an average, worth $43worth per visit and comes three times a year. The company's gross profit margin is 35 per cent with a customer defection rate of 0.4.

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Definitions:

Attractive Celebrities

Famous individuals who are widely recognized and considered appealing or desirable in appearance.

Emotional Attacks

Intense episodes of emotional distress, often featuring overwhelming feelings of anxiety, sadness, or anger, not recognized as a formal medical term.

Elaboration Likelihood Model

A theory in social psychology that explains different ways of processing stimuli, why they are used, and their outcomes on attitude change.

Central

Pertaining to the most important or primary component in a system or concept.