A popular business consultant has suggested that a company's success can be predicted by the degree to which customers are willing to recommend the company to others. Take a look at item 6 on the AFC questionnaire (see Exhibit 16.2). A score of 0 to 6 places a respondent in the "detractor" category; those with scores of 7 or 8 are considered "passively satisfied; and those with scores of 9 or 10 are "promoters." Furthermore, for any company, a net promoter score (NPS) can be calculated by subtracting the percentage of detractors from the percentage of promoters.7
a. Recode the responses to item 6 into three categories (i.e., detractors, passively satisfied, promoters).
b. Compute the NPS for the company.