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Customer loyalty programs are attempts to bond customers to a company

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Re: Customer loyalty programs are attempts to bond customers to a company  [#permalink]

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New post 13 Jul 2019, 17:20
Question 3
A - this is the author's opinion, not the advocates.
B is the advocates opinion


Question 4
GMATNinja, I got tripped by this.

Sure it states that 80% of revenue comes from 20% of customers, but Revenue does not equal profit, and we are continually led to believe that loyal customers have lower associated costs, particularly in the last paragraph.

I chose C incorrectly. I now see that C Is incorrect because are told that only 10% of customers are TRULY loyal, so it wouldn't make sense for a business employing the 80/20 rule to expect any more than 10% of customers to be 100% loyal as implied by question C.

**EDIT - I see the user above me quoted "this profitable 20 percent are not necessarily loyal buyers, especially in the sense of exclusive loyalty", which sorta nullifies what I said about costs being lower for such customers.
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Re: Customer loyalty programs are attempts to bond customers to a company  [#permalink]

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New post 18 Jul 2019, 20:30
1
dcummins wrote:
Question 3
A - this is the author's opinion, not the advocates.
B is the advocates opinion


Question 4
GMATNinja, I got tripped by this.

Sure it states that 80% of revenue comes from 20% of customers, but Revenue does not equal profit, and we are continually led to believe that loyal customers have lower associated costs, particularly in the last paragraph.

I chose C incorrectly. I now see that C Is incorrect because are told that only 10% of customers are TRULY loyal, so it wouldn't make sense for a business employing the 80/20 rule to expect any more than 10% of customers to be 100% loyal as implied by question C.

**EDIT - I see the user above me quoted "this profitable 20 percent are not necessarily loyal buyers, especially in the sense of exclusive loyalty", which sorta nullifies what I said about costs being lower for such customers.

dcummins, it seems as though you've answered your own question, which is awesome! Of course, if you still have concerns about this one, please don't be shy. :)
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Re: Customer loyalty programs are attempts to bond customers to a company  [#permalink]

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New post 17 Nov 2019, 10:55
Very easy passage, took 11 mins and got 5 correct and 1 incorrect.

I initially took 9 mins to read plus solve first 5 questions then got stuck in last one.

If someone can help with the last question then it will be appreciated.
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Re: Customer loyalty programs are attempts to bond customers to a company  [#permalink]

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New post 17 Nov 2019, 10:58
Very easy passage, took 11 mins and got 5 correct and 1 incorrect.

I initially took 9 mins to read plus solve first 5 questions then got stuck in last one.

If someone can help with the last question then it will be appreciated.

Below is the last question.

6. The author of the passage suggests that which of the following is most likely to be true of a customer who is exclusively loyal to a particular brand of product?

A. The customer probably began buying that brand of product only within the past year.
B. The customer is probably among the most profitable customers for the company that manufactures that brand of product.
C. The customer is probably not a heavy consumer of that particular type of product.
D. The customer is probably a loyal customer when purchasing other types of products as well.
E. The customer probably sampled numerous brands of that type of product before becoming loyal to a particular brand.
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Re: Customer loyalty programs are attempts to bond customers to a company   [#permalink] 17 Nov 2019, 10:58

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