Airlines Often Offer "Points," Which Are Earned by Flying on a Particular

question 254

True/False

Airlines often offer "points," which are earned by flying on a particular airline and can be used for various rewards. This is an example of a lock-in strategy.

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Definitions:

Vertical Differentiation

The arrangement of an organization into hierarchical levels, where each level has different levels of authority and responsibility.

Horizontal Differentiation

The division of roles and responsibilities within an organization at the same hierarchical level to achieve specialization.

Centralization

The process of concentrating control and decision-making authority in a central organization, location, or group of individuals.

Formalization

Pertains to the extent to which rules, procedures, instructions, and communications are written down and standardized within an organization.