Burke, Inc. (burke.com) developed a Secure Customer Index (SCI) using the combined scores on three components of customer loyalty. They ask, for example: Overall, how satisfied were you with your visit to this restaurant? To examine their likelihood to recommend: How likely would you be to recommend this restaurant to a friend or associate? And finally, to examine the likelihood of repeat purchases, they ask How likely are you to choose to visit this restaurant again? With these three components and the appropriate scales for each, secure customers are defined as those giving the most positive responses across all three components. Companies are increasingly able to link customer satisfaction and customer loyalty to bottom-line benefits. By examining customer behaviors over time and comparing them to SCI scores, a strong connection can be shown between secure customers and repeat purchasing of products or services. Using a customer loyalty index helps companies better understand their customers.

1. In your judgment, what level of scale design would be the most appropriate in creating the necessary scale measurements for collecting primary data on each construct?

2. For each construct, design an example of the actual scale measurement that could be used by Burke, Inc. to collect the data.

3. What are several weaknesses associated with how Burke, Inc. measured its Secure Customer Index (SCI)? Make sure you clearly identify each weakness and explain why you feel it is a weakness.

4. If you were the lead researcher, what types of scale measurement would you have used to collect the needed data for calculating SCI? Why? Write some scale measurements you would use.

5. Do you agree or disagree with the Burke, Inc. interpretation of the value they provide their clients using the Customer Loyalty Index? Support your response.