Question

Marketing Question: Bicycle store 2Wheels notices that it has a high proportion of low-profit customers, but...

Marketing Question:

Bicycle store 2Wheels notices that it has a high proportion of low-profit customers, but the store doesn't want to terminate the customer relationship. What can 2Wheels do to make these customers more profitable?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

2Wheels can encourage unprofitable customers to buy more or in larger quantities, forgo certain features or services, or pay higher amounts or fees. It can also use cross-selling or up-selling techniques.

Cross selling is when you encouraging a customer who buys a product (gasoline, for example) to buy a related or complementary product (engine oil, for example).

Upselling is when you persuade a customer to buy a more expensive item or upgrade a product or service to make the sale more profitable.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. 60% of a department stores customers have a credit card from that department store, and...
1. 60% of a department stores customers have a credit card from that department store, and 30% of a store’s customers make at least 1 purchase per month on average. Finally, 80% of the customers who make at least 1 purchase per month have a store’s credit card. Of the customers who do not make at least 1 purchase per month, what is the probability a randomly chosen customer has a store’s credit card? (please round your answer to 4...
Darren Mack owns the "Gas n' Go" convenience store and gas station. After hearing a marketing...
Darren Mack owns the "Gas n' Go" convenience store and gas station. After hearing a marketing lecture, he realizes that it might be possible to draw more customers to his high-margin convenience store by selling his gasoline at a lower price. However, the "Gas n' Go' is unable to qualify for volume discounts on its gasoline purchases, and therefore cannot sell gasoline for profit if the price is lowered. Each new pump will cost $150,000 to install, but will increase...
The Keynesian perspective applies when GDP and employment are... a high b low c doesn't matter...
The Keynesian perspective applies when GDP and employment are... a high b low c doesn't matter d all of the above Question 2 (1 point) In general, when GDP is low, what will lowering interest rates do? a It will have very little effect on GDP or employment. b It will make money more plentiful and stimulate the economy, increasing GDP and employment. c It will increase inflation by making money more plentiful, and have little effect on GDP or...
Choose and describe a business or product that you think has a particularly high or low...
Choose and describe a business or product that you think has a particularly high or low profit margin and share a photo of the business/product (or company logo). Why do you think that the profit margin is low or high, and why does it make sense given the company’s business model? If the image is not your own, be sure to cite the source in your description.
Question 3) A convenience store chain wants to determine the relationship between the income of customers...
Question 3) A convenience store chain wants to determine the relationship between the income of customers and the frequency of visiting stores in the chain. To answer your client’s question, you would do a test of hypothesis. State the null and alternative hypotheses for this particular study. Which significance level alpha would you select? If both income and “frequency of store visits” were measured on ordinal scales, how would you analyze the relationship between these two variables? Set up an...
Product Marketing-This refers to the marketing of tangible goods, in other words it refers to the...
Product Marketing-This refers to the marketing of tangible goods, in other words it refers to the marketing of goods which people can see and touch Service Marketing-This refers to the marketing of intangible goods, in other words we can say offering compensation for something which you cannot see or touch. Difference between Product Marketing and Service Marketing In terms of meaning, product marketing is processes carried out by an organization or a company to promote its product to a market....
Suppose that an insurance company wants to offer insurance for bicycle theft. They do a careful...
Suppose that an insurance company wants to offer insurance for bicycle theft. They do a careful market survey and find that the incident of theft varies widely across communities. In some areas there is a high probability that a bicycle will be stolen, and in other areas thefts are quite rare. Suppose that the insurance company decides to offer the insurance based on the average theft rate. What do you think will happen? Answer: the insurance company is likely to...
Critical Thinking Activity Are Customers Really Loyal? "I'll stick with you through thick and thin," or...
Critical Thinking Activity Are Customers Really Loyal? "I'll stick with you through thick and thin," or "What have you done for me lately?" Which best describes the customers in today's marketplace? Two quality managers are debating the concept of customer loyalty. One of them, Jack Hayes, claims that customer loyalty does exist, that it can be won, and that winning a customer's loyalty should be every organization's goal. According to Jack, "If you have a history of satisfying a customer,...
The manager of a music store has kept records of the number of CDs bought in...
The manager of a music store has kept records of the number of CDs bought in a single transaction by customers who make a purchase at the store. The accompanying table gives six possible outcomes and the estimated probability associated with each of these outcomes for the chance experiment that consists of observing the number of CDs purchased by a randomly selected customer at the store. Number of CDs purchased 1 2 3 4 5 6 or more Estimated probability...
Question 1: Your analytics team tells you that amount of time a typical customer spends in...
Question 1: Your analytics team tells you that amount of time a typical customer spends in a coffee shop is normally distributed with mean (?) 10 minutes and standard deviation (?) of 3 minutes. What proportion of customers spend less than 5 minutes in the coffee shop? Question 2: Your analytics team tells you that a coffee customer spending in the store is normally distributed with mean (?) $5 dollars and a standard deviation (?) $2 dollars. What is the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT