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.

---

Definitions:

Burn Fewer Calories

A reduction in the rate at which the body expends energy, typically resulting in weight gain if caloric intake remains constant.

Hyperphagia

A medical condition characterized by an excessive hunger or increased appetite.

Bulimia Nervosa

An eating disorder marked by cycles of binge eating followed by behaviors to avoid weight gain, such as self-induced vomiting.

Binge Eating

A disorder characterized by recurrent episodes of eating large quantities of food rapidly and to the point of discomfort, often accompanied by feelings of loss of control.