AIRLINE MINI CASE: Transatlantic Airlines Flies Between Popular Destinations in the United

question 124

Multiple Choice

AIRLINE MINI CASE: Transatlantic Airlines flies between popular destinations in the United States and western Europe, and claims to deliver "a first class experience for every passenger." All ticket purchases are made online, and users of the Transatlantic website must register before they search for flights. Transatlantic uses this information to determine which consumers are generating the most profits for the company, which services they purchase most frequently, and which services they are potentially interested in but are not purchasing. This information is then used to make specific promotional offers to profitable customers in an attempt to retain their business and to expand the range of flight services that they purchase. Transatlantic also uses this information to provide unexpected perks to highly profitable customers, like free upgrades to first class.
-In the AIRLINE MINI CASE, when Transatlantic upgrades the seat assignment of especially loyal customers, the airline is attempting to increase ________.

• A) net revenue
• B) production capacity
• C) customer satisfaction
• D) social responsibility
• E) profit margins

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Definitions:

U.S. Dollars

The official currency of the United States, which is used as a standard monetary unit for various international transactions.

Foreign Trade Zone

A designated location within a country where goods can be imported, stored, and processed without being subject to import duties until they enter the domestic market.

U.S. Customs Territory

Refers to the geographic area where U.S. laws, especially those related to import duties and tariffs, are in full effect.

Duty Rate

The tax imposed on imports and exports, usually calculated as a percentage of the value.