A Modeling Perspective

Many firms would like to quantify how a one-unit increase in loyalty impacts business outcomes such as increased revenues. This type of research is known as linkage analysis. The link between attitudes and revenues is often assumed but quantifying that relationship can be difficult as there are many external and internal factors which impact
revenue. The ideal way to link attitudes to behaviors and business outcomes is by means of a controlled experiment, as is done for the evaluation of new drugs. However, such approaches are not feasible for most businesses. Instead, organizations must focus on how to carefully measure other factors such as price increases, active customers and the like. Once the appropriate data is collected and measured, the task of verifying the link between attitudes to behaviors to business outcomes is more easily accomplished.

Dr. Kurt Pflughoeft