Question

1)Explain how a firm benefits from customers who make multiple purchases versus customers who make just one purchase.

Answer 1

One of the biggest and prime benefit of multiple purchases by customer is increased sales and hence increased profits.

Further customer who make multiple purchases have more probability of making repeat purchases as compared to customers who make single purchase.

It is easier for company to make customers who make multiple purchases loyal by providing them special offers on their bulk purchasing.

It is easy to handle limited customer queries who make multiple purchases as compared to multiple customers who make single purchase.