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If an entrepreneur checks repeat purchase and complaint rate to measure customer satisfaction, what is being done?

Answer and explanation

Correct answer: Measurement of customer experience

Customer satisfaction cannot be seen directly as a single physical object, so entrepreneurs use indicators to understand it. Repeat purchase often suggests that customers found the product useful and were willing to return. Complaint rate shows how often customers report problems or dissatisfaction. These measures do not provide a perfect picture by themselves, but together they offer useful evidence about customer experience and service quality.

The correct answer is B because the entrepreneur is using observable data to measure customer experience. This is better than relying only on guesses or personal opinion. A is incorrect because the decision is evidence-based, not guess-based. C and D do not describe checking purchases and complaints. The entrepreneur can compare these indicators over time, investigate changes, and use the findings to improve the product or service. Thus, measurable customer signals are being used to assess satisfaction.

Related tags

Customer SatisfactionRepeat PurchaseComplaint Rate

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