What is the average value of a loyal consumer

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Reference no: EM1377299

Q. 1. When the value of a loyal consumer (VLC) market segment is high, should these consumers the given premium goods also services for premium price? If the VLC is low, should they be given less service? Explain

2. Illustrate what is the average value of a loyal consumer (VLC) in a target market segment if the average purchase price is $50 per visit, the frequency of repurchases is 12 times per year also contribution margin is 10%. Also the average consumer defection rate is 25%? If a continuous improvement goal is set of a 20% defection rate next year also 15% two years from now, illustrate what are the revised VLCs over their average buying life?

Reference no: EM1377299

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