Frequent-Flyer Programs Are an Example of Financial Incentives to Customers

question 93

Multiple Choice

Frequent-flyer programs are an example of financial incentives to customers in exchange for their continuing patronage.After flying a certain number of miles or flying a specified number of times,the frequent-flyer program participant earns a free flight or some other award such as free lodging.Airlines that use frequent-flyer programs are practicing:

• A) commitment selling
• B) transaction marketing
• C) transformational marketing
• D) marketing engineering
• E) relationship marketing

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Definitions:

Bond Prices

The market price at which a bond is traded, which can fluctuate based on interest rates and the bond’s credit rating among other factors.

The National Post

A Canadian English-language national newspaper.

Term Structure

Pertains to the connection between interest rates or yields on bonds and varying durations or maturities.

Interest Rates

The percentage charged on the total amount of borrowed money or paid on deposited funds.