Assume the average value of a loyal customer (VLC) in a target market segment if the average purchase price is$55 per visit, the frequency of repurchase is 12 times per year, the contribution margin is 20%, and the averagecustomer defection rate is 30%. If the customer defection rate changed to 25%, what is the percent change inthe average VLC?50%O 25%O 10%O 20%O 33%

The monetary value or profitability produced by a customer who persistently interacts with a firm…

Answered: Assume the average value of a loyal…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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