EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 10PA
Summary Introduction
Interpretation: The average value of a loyal customer (VLC) needs to be calculated as per the given information.
Concept Introduction: The value of a loyal customer (VLC) refers to the quantification of the total revenue generated from each client over its buying life cycle.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Estimate the value of a loyal customer of a loyal Volvo automobile owner. Assume the contribution margin is 0.33, the purchase price is $67,000, the repurchase frequency is every three years, and the customer defection rate is 23 percent. Do not round intermediate calculations. Round your answer to the nearest dollar.
$ _________
Estimate the value of a loyal customer of a loyal Volvo automobile owner. Assume the contribution margin is 0.27, the purchase price is $64,000, the repurchase frequency is every four years, and the customer defection rate is 26 percent. Do not round intermediate calculations. Round your answer to the nearest dollar.
Estimate the value of a loyal customer of a loyal Volvo automobile owner. Assume the contribution margin is 0.31, the purchase price is $60,000, the repurchase frequency is every five years, and the customer defection rate is 20 percent. Do not round intermediate calculations. Round your answer to the nearest dollar.
$
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- When it is stated that a service driven company should redefine what the service should be, what is being suggested? Select one: a. The customer doesn't know what they want (size, weight, cost, etc.) b. The customer doesn't know how to ask for service improvement (cost, features, reliability, etc.) c. The customer may really want subtle features (fairness, features, information, etc.) d. The customer may really need some form of discount (less money, more service, or both)arrow_forwardThe customer perspective of the balanced scorecard approach is the most traditional view of the company. evaluates the internal operating processes critical to the success of the organization. evaluates how well the company develops and retains its employees. evaluates how well the company is performing from the viewpoint of those people who buy its products and services.arrow_forwardAssume that a customer in the small contractor target market segment buys an electric drill on average every two years (or every 0.5 year) for $200, when the gross margin on the drill averages 20 percent. Questions 1. What is the value of a loyal customer (VLC) if the customer retention rate is 50 percent? Round your answer to the nearest cent. $ 2. What is the value of a loyal customer (VLC) if the customer retention rate increases to 75 percent? Round your answer to the nearest cent. $ 3. What is a 1 percent change in market share worth to the manufacturer if it represents 150,000 customers? Round your answers to the nearest dollar. 50 percent customer retention rate case: $ 75 percent customer retention rate case: $ 4. What do you conclude? If customer retention can be increased from 50 to 75 percent through better value chain performance, the economic payoff is _________doubledquadrupled.arrow_forward
- A copy company wants to expand production. It currently has 20 workers who share eight copiers. Two months ago, the firm added two copiers, and output increased by 100,000 pages per day. One month ago, they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardIn the last three (3) years the company has grown from 30 employees to 100. Jason and LeAnn need advice on controlling the daily staffing levels, so A&E are able to meet or exceed customer expectations for responsiveness without sacrificing its own identity as a company. Choose one of the issues facing A&E and propose a solution and rationale for your response. Paid vacation along with the most valuable times for vacation (peak season time off) Attendance Issue-The Weekend Flu (Friday-Monday) A&E needs to know whether customers are satisfied with the products and responsive to their needs as outdoor enthusiasts.arrow_forwardTerri has taken a skills inventory assessment test six different times and has received six differing evaluations of where her job strengths are greatest. This test has low __________. Select one: a. accessibility b. validity c. acceptability d. reliability e. probabilityarrow_forward
- Jessica albaa has been hired as an information systems consultant for Royal Caribbean cruise lines. Her first task is to make a recommendation for a system that can help with improving customer service by reducing response times, while considering that Royal caribbean does not have the capacity to add additional customer service phone operators to their staff. Which of the following technologies do you recommend to Royal caribbean to help with improving customer service response times? -Management support system -executive information system -enterprise resource planning system -knowledge management system -personalization systemarrow_forwardPlease answer the following multiple choice question 1. To have better safety records, the XYZ Company gives monetary incentive awards to its workers for lower accident rates due to the improper use of heavy equipment. Which of the following incentive plans describes this example? Referral Management incentive Pieceworkarrow_forwardWhen a customer phones the help desk and says, "My machine won't start," a trained technician should have four important investigative questions. This will help them find the problem.arrow_forward
- How to operationalize variables in a customer satisfaction survey, using a numerical scale questionnairearrow_forwardPerformance management is an ongoing process including five interrelated components. explain how the poor implementation of a phase in the process or how a disrupted link between any of the phases will have a negative impact on the performance management process as a wholearrow_forwardIn assessing its performance, a state department of transportation records the number of highway miles paved per maintenance crew per day. This is an example of what kind of performance measure? a. Efficiency b. Effectiveness c. Service quality d. Productivityarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.