Promotional Schemes Like Frequent Shopper Programs Provide Incentives to Loyal

question 135

Multiple Choice

Promotional schemes like frequent shopper programs provide incentives to loyal buyers. Considering Porter's Five Forces model, such offers will:

• A) reduce the threat of new entrants.
• B) decrease the rivalry among competitors.
• C) decrease the bargaining power of the supplier.
• D) increase the threat of substitute products.

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Definitions:

Favorable Variance

A financial situation where actual costs are less than the standard or budgeted costs, or actual revenue is higher than expected.

Quality Control Standards

Guidelines and criteria set to ensure the products meet certain thresholds of quality and reliability before they are delivered to customers.

Flexible Standards

Performance benchmarks that can adjust based on changes in actual conditions, allowing for more accurate budgeting and control.

Materials Price Variance

A measure of the difference between the actual cost of materials and the expected cost at standard prices.