To Increase Customer Loyalty, 2Wheels Wants to Start a Club

question 130

Short Answer

To increase customer loyalty, 2Wheels wants to start a club for its dedicated customers, but wants to make sure that only members who want to participate in activities join the club. What can it do to ensure this?

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Definitions:

Resale Price

The price at which an item is sold after it has been previously purchased or used.

Adverse Selection

A situation in financial markets where buyers and sellers have access to different levels of information, often leading to transactions where the party with less information is at a disadvantage.

Tech Support

A service provided by companies to help customers solve technical problems or issues related to their products or services.

Bureaucratic Structure

An organizational structure characterized by strict rules, a hierarchy of authority, and a clear division of labor.