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Assume the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $55 per visit, the frequency of repurchase is 12 times per year, the contribution margin is 20%, and the average customer defection rate is 30%. If the customer defection rate changed to 25%, what is the percent change in the average VLC? O 50% O 25 % O 10% 20% O 33%

Assume the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $55 per visit, the frequency of repurchase is 12 times per year, the contribution margin is 20%, and the average customer defection rate is 30%. If the customer defection rate changed to 25%, what is the percent change in the average VLC? O 50% O 25 % O 10% 20% O 33%

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Assume the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $55 per visit, the frequency of repurchase is 12 times per year, the contribution margin is 20%, and the average customer defection rate is 30%. If the customer defection rate changed to 25%, what is the percent change in the average VLC? 50% O 25% O 10% O 20% O 33%
Transcribed Image Text:Assume the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $55 per visit, the frequency of repurchase is 12 times per year, the contribution margin is 20%, and the average customer defection rate is 30%. If the customer defection rate changed to 25%, what is the percent change in the average VLC? 50% O 25% O 10% O 20% O 33%
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