MINI-CASE
Your brother,Fred,owns ATZ Inc. ,a company that provides wireless telecommunications network in several cities in the Midwest region.You are taking a marketing class in college,and you asked Joe for some information about his business for a class project.You determined that one of his customers has a long customer history of 75,an above-average purchase amount of 55,a low repurchase desirability of 20,a weak product preference of 10,and the customer does not recommend ATZ services to potential customers.The customer is clearly dissatisfied,but since ATZ Inc.is the only wireless telecommunications network provider in the city he is compelled to use it.
-Mini-Case Question.Based on the values provided,determine the customer loyalty index.

Question

Quizplus · Accepted Answer

The customer loyalty index can be calculated using the formula: (Customer History + Purchase Amount + Repurchase Desirability + Product Preference) / 4. Plugging in the values: (75 + 55 + 20 + 10) / 4 = 160 / 4 = 40. However, since the customer does not recommend the service, we subtract a penalty (usually 8) from the total, resulting in 32.

MINI-CASE Your Brother,Fred,owns ATZ Inc. ,A Company That Provides Wireless Telecommunications