What Can You Learn from a Customer Loyalty Index?
Customer Loyalty Index Assignment
MKT 335 – Chapter 7: Customer Loyalty Index Assignment
What Can You Learn from a Customer Loyalty Index?
The Marketing Research in Action highlights the point customer loyalty is a composite of several
qualities:
• The intention to buy again and/or buy additional products or services from the same company.
• A willingness to recommend the company to others.
• A commitment to the company demonstrated by a resistance to switching to a competitor.
Customer behaviors that reflect loyalty include:
• repeat purchasing of products or services.
• purchasing more and different products or services from the same company.
• recommending the company to others.
Burke, Inc. (burke.com) developed a Secure Customer Index®
(SCI®
) using the combined scores on three
components of customer loyalty. (Exhibit 7.17) They ask, for example: “Overall, how satisfied were you
with your visit to this restaurant?” To examine their likelihood to recommend: “How likely would you be
to recommend this restaurant to a friend or associate?” And finally, to examine likelihood of repeat
purchases, they ask “How likely are you to choose to visit this restaurant again?” With these three
components and the appropriate scales for each, “secure customers” are defined as those giving the
most positive responses across all three components.
Companies are increasingly able to link customer satisfaction and customer loyalty to bottom-line
benefits. By examining customer behaviors over time and comparing them to SCI®
scores, a strong
connection can be shown between secure customers and repeat purchasing of products or services.
Using a customer loyalty index helps companies better understand their customers.
Answers to Hands-On Exercise
1. In your judgment, what level of scale design would be the most appropriate in creating the
necessary scale measurements for collecting primary data on each construct?
2. For each construct, design an example of the actual scale measurement that could be used by
Burke, Inc. to collect the data.
3. What are several weaknesses associated with how Burke, Inc. measured its Secure Customer
Index®
(SCI®
)? Make sure you clearly identify each weakness and explain why you feel it is a
weakness.
4. If you were the lead researcher, what types of scale measurement would you have used to collect
the needed data for calculating SCI®
? Why? Write some scale measurements you would use.
5. Do you agree or disagree with the Burke, Inc. interpretation of the value they provide their clients
using the Customer Loyalty Index? Support your response.
Your paper needs to be two to three pages, not counting cover page, in length. Be sure to follow APA
formatting and citing of sources.
Answer preview what Can You Learn from a Customer Loyalty Index?
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