Angel and demon customers

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Angel and demon customers is a marketing concept dividing customers into two groups.[1] Angels customers are profitable, whereas demon customers may actually cost a company more to serve than it makes from them.[1] Demon customers attempt to extract as much value as possible out of the seller.[1] Examples of demon customer buying behaviour:

  • Buying discounted merchandise designed to boost store traffic, then resell the goods at a profit on eBay.[1]
  • Buying a product, apply for rebates, return the purchases, then buy them back at returned merchandise discounts.[1]

Notes[edit]

  1. ^ a b c d e Kotler and Armstrong 2008, p. 24-25.

References[edit]