Customer Loyalty Programs Such as Airline Frequent Flyer Miles Are

question 126

Multiple Choice

Customer loyalty programs such as airline frequent flyer miles are an attempt to:

• A) decrease competitors' access to distribution channels.
• B) develop a cost advantage independent of scale.
• C) increase customers' switching costs.
• D) overcome the perishability of the hotel "product."

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Definitions:

Transfer Payment

Money distributed by the government to individuals without any requirement for those individuals to provide goods or services in return.

Excise Taxes

Taxes imposed on specific goods, services, or transactions, typically aimed at discouraging their consumption or raising revenue for specific purposes.

Per-Unit Taxes

Taxes that are charged on a per-item basis, often levied on specific goods or services, such as gasoline or cigarettes.

Medicare & Medicaid

Federal programs in the United States that provide health coverage; Medicare serves older adults and some younger disabled individuals, while Medicaid assists low-income people.