DECA Hospitality Services Team Decision Making Practice Exam

What data collection method is best for measuring actual repeat business?

1. Customer feedback surveys

2. Collecting data on product purchases from loyalty programs

3. Phone interviews with past customers

4. Market analysis reports

The correct answer is: Collecting data on product purchases from loyalty programs

Collecting data on product purchases from loyalty programs is the best method for measuring actual repeat business because loyalty programs are specifically designed to track customer behavior over time. These programs provide direct insight into which customers are returning to make additional purchases, offering concrete evidence of repeat business. Loyalty programs typically record transaction data, which enables businesses to analyze purchase frequency and customer retention rates effectively. This quantitative data allows for precise tracking of customer loyalty, assessing how often customers return and the types of products or services they are repurchasing. Other methods, while useful for gathering different types of information, do not offer the same level of direct measurement of repeat business. Customer feedback surveys may provide insights into customer satisfaction or preferences but do not capture actual purchase behavior. Phone interviews could yield qualitative insights but are subject to biases and do not provide systematic data on overall repeat transactions. Market analysis reports focus more on broader trends and competitor performance, rather than individual customer behavior. Thus, using data from loyalty programs offers the most accurate and relevant measurement of repeat business, making it the superior choice for this context.