Customer Defection
MKT 711
9/4/2012
1. The purpose of the study dealt with customer defection. It talks about how the customers are slowly not becoming as loyal as they use to be. They seen a pattern after five years, the customer does not stay loyal to the company. There are different stages of the process of losing loyal customers and keeping them. Loyalty and profits, the more the customer is worth the more profits come out of it because the longer the customer stays. Failure, the employee learning the instructive steps on their own and leaving. Core customers, this is hard to determine but the best way to determine it is to ask who the most loyal and most profitable to you?
2. I think the article represents a conceptual study. The author uses a general research and experiences from other people an businesses to back up his points. There are some numbers given but I feel like there needs to be a lot more numbers to declare it as a quantitative study. The author uses examples like Lexus and baseball players to back up his case about the customer loyalty. When dealing with Lexus, they asked every member of their head quarters staff to interview four customers a month. The article also talked about baseball players and their batting averages. Someone who bats .280 compared to someone who bats .320 is a big difference in the players. Even though it is only .4 away it still tells how the player does in the batting line up. The article uses examples like these in two different situations to show the difference in how everyone does things differently to show their customer base and how loyal they are. Even though they talked about baseball players they showed the popularity of the player because of their batting average number. This would also help by understanding the cash flow and products.
3. The researchers found that the key to customer loyalty is the creation of value. The value that the customer needs the employer to help them with their profits or
9/4/2012
1. The purpose of the study dealt with customer defection. It talks about how the customers are slowly not becoming as loyal as they use to be. They seen a pattern after five years, the customer does not stay loyal to the company. There are different stages of the process of losing loyal customers and keeping them. Loyalty and profits, the more the customer is worth the more profits come out of it because the longer the customer stays. Failure, the employee learning the instructive steps on their own and leaving. Core customers, this is hard to determine but the best way to determine it is to ask who the most loyal and most profitable to you?
2. I think the article represents a conceptual study. The author uses a general research and experiences from other people an businesses to back up his points. There are some numbers given but I feel like there needs to be a lot more numbers to declare it as a quantitative study. The author uses examples like Lexus and baseball players to back up his case about the customer loyalty. When dealing with Lexus, they asked every member of their head quarters staff to interview four customers a month. The article also talked about baseball players and their batting averages. Someone who bats .280 compared to someone who bats .320 is a big difference in the players. Even though it is only .4 away it still tells how the player does in the batting line up. The article uses examples like these in two different situations to show the difference in how everyone does things differently to show their customer base and how loyal they are. Even though they talked about baseball players they showed the popularity of the player because of their batting average number. This would also help by understanding the cash flow and products.
3. The researchers found that the key to customer loyalty is the creation of value. The value that the customer needs the employer to help them with their profits or