Chapter 7 & 8 - XYZ Electronics - Customer Retention Problem

Chapter 7 And 8

XYZ Electronics - Customer Retention Problem

Background: XYZ Electronics is a well-established consumer electronics retailer that offers a wide range of products, including smartphones, laptops, audio devices, and home appliances. Over the years, they have built a solid customer base and successfully attracted new customers. However, the company is currently facing a significant challenge with customer retention.

XYZ Electronics has noticed a decline in customer retention rates over the past year. While they can still attract new customers through various marketing efforts, the repeat purchase rate and overall customer loyalty have dropped. The company is concerned about the potential impact on its revenue and market share if this trend continues.

Key Issues:

1. Decreasing      Repeat Purchases: The data shows that many      customers are not making repeat purchases as frequently as they used to.      Many customers who made multiple purchases in the past are now buying only      once and not returning for future purchases.
2. Increased      Churn Rate: The churn rate, which measures the      percentage of customers who have stopped purchasing from XYZ Electronics,      has risen notably. This is particularly concerning because it suggests      that customers are not finding enough value in the company's products and      services to remain loyal.
3. Lack      of Engagement: Customer engagement levels have      dropped, both in terms of interactions on the company's website and social      media platforms, as well as in-store visits. This lack of engagement      indicates that customers might be losing interest in XYZ Electronics.

Assignment Instructions

1. Summarize the case in your own words within a paragraph. (10 points)

2. For each of the key issues, do some research and explain factors that may be causing these issues. (40 points)

3. Write a research question Based on the researched factors in question 2. You must have at least one research question for each key issue. (20 points)

4. Derive at least one hypothesis for each research question. Also, try to explain the rationale for each hypothesis. (30 points)

Chapters 7 & 8     

Assignment 1 (Case: Identify   business problems, Craft research questions, identify factors/variables,   Craft hypothesis)