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Figure 12.23 Graph comparing the price in U.S. dollars with a customer loyalty
score
Figure 12.23 shows the price distribution for a customer base. In this example,
loyalty score and price are positively correlated; as the loyalty score increases, so
do the prices that the customers are willing to pay. It may seem like a strange
phenomenon that the most loyal customers in this example are willing to pay
higher prices, but the reality is that customers who are very loyal tend to be less
sensitive to price fluctuations or increases. The key, however, is to understand
which customers are highly loyal so that appropriate pricing can be charged to the
right groups of people.
Figure 12.24 shows a variation on 12-23. In this case, the new graphic portrays the
same customer price tiers, but this time a rug representation (Chapter 3) has been
added at the bottom to reflect the distribution of the data points.
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