EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 2, Problem 12PA
Summary Introduction
Interpretation:The average defection rate needs to be calculated as per the given information.
Concept Introduction: The rate of average defection states that the rate at which any customer gets dissatisfied and stops purchasing the product from a company.
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Use the Excel template VLC to find the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $75 per visit, the frequency of repurchase is six times per year, the contribution margin is 10 percent, and the average customer defection rate is 25 percent?
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