Question

Repeat customers differ from loyal customers in that repeat customers ________.

a)are likely to recommend a company's product
b)are often simply "big spenders"
c)have a loyalty score between 70 and 100
d)have a high product preference score
e)have low profit potential

Answer 1

Repeat customers differ from loyal customers in various ways, including their likelihood to recommend a company's product.

Step-by-step explanation:

Repeat customers differ from loyal customers in that they

1. are likely to recommend a company's product
2. may not necessarily be big spenders as loyalty is not solely based on spending habits
3. can have a loyalty score between 70 and 100, but it is not a defining characteristic
4. may have a high product preference score, but it is not a requirement
5. do not necessarily have low profit potential as their repeat business can contribute to a company's profits

Answer 2

Repeat customers may or may not strongly recommend a company to others, unlike loyal customers who are likely to do so. Loyal customers have a stronger emotional investment and higher loyalty score. A company's good reputation plays a crucial role in cultivating both repeat and loyal customers.

Step-by-step explanation:

Repeat customers differ from loyal customers because repeat customers may not necessarily have a strong attachment to the company or brand, whereas loyal customers have a deep-seated preference and are more likely to recommend the company's products to others. While repeat customers could also recommend a business to their circle, this behavior is more characteristic of loyal customers who not only repeatedly buy products or services but also act as advocates for the brand. The distinction lies in the degree of commitment and enthusiasm for the company, with loyal customers having a stronger emotional investment and thus, typically a higher loyalty score. It's also essential for businesses to establish a good reputation as it leads to retaining customers who trust the consistent quality of the product or service, and this trust can translate into them becoming both repeat and loyal customers over time.