Frequent Flyers If You Think George Clooney's Character in the Movie Up

question 11

Multiple Choice

Frequent Flyers
If you think George Clooney's character in the movie Up in the Air was pure fiction,think again.Clooney portrayed a frequent flyer who enjoyed top-of-the-line perks the likes of which even most "elite" flyers don't experience.That's because he was a member of American Airline's invitation-only ConciergeKey recognition program.Most airlines maintain these unpublished super elite frequent flyer plans,such as Continental's Chairman's Circle and Delta's Executive Partner programs.These programs are reserved for the highest-volume customers in terms of miles flown or highest-value in terms of revenue.You'll have to fly upward of 300,000 miles or spend $50,000 a year to be invited.
-Refer to Frequent Flyers.Airlines have estimated the future value of these elite flyers and found that they are very profitable for their business.What technique did the airlines use to project the future value of these flyers over a period of several years?

• A)RFM analysis
• B)Lifetime value analysis (LTV)
• C)Cluster analysis
• D)Conjoint analysis
• E)Data enhancement analysis

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Definitions:

Touch Point

Any point at which a customer and the company come into contact.

Customer

A person or organization that buys goods or services from a store or business.

Company

An entity formed to engage in a business, trade, or industrial activity, typically characterized by its legal independence and ownership structure.

Customer Relationship Management

A strategy for managing an organization's interactions with current and potential customers, often using data analysis to study large amounts of information.