Asked by Petronel Ntimane on Jun 19, 2024
Verified
Which of the following is a true statement based on the research of Frederick Reichheld?
A) Loyal customers cost more to serve.
B) New customers provide referrals.
C) Loyal customers pay price premiums.
D) New customers buy more products.
Price Premiums
The additional amount that consumers are willing to pay for a product or service that they perceive as having higher value compared to its alternatives.
Frederick Reichheld
A business strategist best known for his work on customer loyalty and the development of the Net Promoter Score (NPS).
Loyal Customers
Consumers who repeatedly buy products or services from the same brand instead of turning to competitors.
- Recognize the benefits of loyal customers in terms of cost, referrals, and willingness to pay price premiums.
Verified Answer
Learning Objectives
- Recognize the benefits of loyal customers in terms of cost, referrals, and willingness to pay price premiums.
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