Case Study for Yedo

After studying and analyzing the seat and problems faced by Yedo, we would betoken Yedo to implement rank card system in their department store establish on SWOT analysis. Firstly, the color to the fraternity for having rank card is not only to micturate more(prenominal) clients and increase gross sales volume, but also watch current customers. By pass membership card, members would enjoy cronk down pricing of goods at trim down footing. Reichheld and Sasser (1990) claimed that companies female genitals boost advantage by al nigh 100% by retaining just 5% more of their customers. According to the law of demand, customers would bribe more as the expenditure goes lower. A study from Shopzilla (Greg Howlett, 2009) in 2007 had shown that 49% of shoppers considered the price to be most in-chief(postnominal) factor in devising a buy decision. This showed that pricing is still the most important factor that affects get decision. Therefore, by offering goods at lower prices comp bed to competitors is definitely a smart choice to thread customers, in particular when members daylight is held e very(prenominal) month. Members can arrest points and redeem throw in gifts and vouchers with the member card. This is a very attractive measure to consumers especially the luxurious gifts such as cars, laptops and television from lucky huff on members day.

Raghubir (2004) verbalize that coupons and promotions afford an economic incentive for the customer to use when purchasing a brand and the effect on consumer redemption of coupons has mostly been affirmative as it attracts customers, and gives them interest in a particular brand. Furthermore, vouchers are like free specie to consumers and they always tend to exit more than the amount stated on the vouchers as they lead be willing to build some extra cash instead of wasting it. This is thus a common consumer psychology. Besides, long-term relationship can be built between the company and the customers by offering membership card. Liam Alvey (1983) (cited by Brian J. William, 2009) found that...If you indispensableness to get a abounding essay, order it on our website: Orderessay

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