A Coffee Shop Is Considering a Customer Loyalty Program

question 22

Multiple Choice

A coffee shop is considering a customer loyalty program.According to research by Reinhartz and Kumar, what should the owners keep in mind when setting up the program?

• A)Many heavy users are multibrand loyal.
• B)Long-life customers are more costly to serve.
• C)High lifetime revenues drive duration, not profit.
• D)Long-term customers are less price sensitive.
• E)Long-life customers pay higher average prices.

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Definitions:

Buick Owner's Demand

The specific preferences and buying patterns of individuals who own or are interested in purchasing Buick vehicles.

Gasoline

A volatile, flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Gas Pump

A gas pump is a machine at a filling station that is used to transfer gasoline from a reservoir to a vehicle's fuel tank.

Reservation Price

The maximum or minimum price at which a consumer is willing to buy or sell a good or service.