Which of the Following Gains the Most Benefit from Introducing

question 42

Multiple Choice

Which of the following gains the most benefit from introducing a frequency program?

• A) the first company to introduce a frequency program in an industry
• B) the fast follower, the second to introduce a program in an industry
• C) the industry sales leader
• D) the niche player in the industry
• E) the low-cost leader in the industry

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Definitions:

Total Revenue

The overall amount of money generated by a business from its sales of goods or services before any costs or expenses are deducted.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specified time period.

Table: Price Elasticity

A tabulated representation of how the quantity demanded of a good responds to changes in its price, expressed as a ratio of percentage changes.

Midpoint Formula

A method used to find the midpoint between two points on a line segment, which is the average of the x-coordinates and y-coordinates of the points.