Montana Mountain Biking

728 Words Jan 5th, 2008 3 Pages
Stages of customer loyalty
Case:
Jerry Singleton founded Montana Mountain Biking (MMB) 16 years ago. MMB offers one-week guided mountain biking expeditions based in four Montana locations. Most of MMB's new customers hear about the company and its tours from existing customers. Many of MMB's customers come back every year for a mountainbiking expedition; about 80 percent of the riders on any given expedition are repeat customers.

Jerry is happy with this high repeat percentage, but he is worried that MMB is missing a large potential market. He has been reluctant to spend a lot of money on advertising. About 10 years ago, he spent $80,000 on a print advertising campaign that included ads in several outdoor interest and sports
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Jerry was not convinced.

Four years ago, MMB launched its first Web site. It included information about the company and its tours, but Jerry did not see any need to include an expedition-booking function on the site. He did think about selling caps and jackets with the MMB logo, but that idea never was implemented. The MMB logo is well known in the mountain biking community in the upper Midwest. The MMB Web site includes an e-mail address so that visitors to the site can send an e-mail requesting more information about the expeditions. Robin Davis, one of MMB's expedition leaders, is an amateur photographer who has taken many photos while on the trails over the years. Last year, she had those photos
digitized and put them on the MMB Web site. The number of e-mail inquiries increased dramatically within a month. Many of the inquiries were about MMB's expeditions, but a surprising number asked for permission to use the photos, or asked if MMB had more photos like those for sale.

Jerry is not quite sure what to make of the popularity of those photos. He is, after all, in the mountain
bike expedition business.

a. Classify MMB's customers using the five stages of customer loyalty.
b. Estimate the percentage of MMB customers who hall into each of the five categories.
Support with logic and evidence…