A Key Principle in Developing a Loyalty or Frequency Program

question 71

True/False

A key principle in developing a loyalty or frequency program is to design the program to enhance the value of what the product offers to customers.

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Definitions:

Product Outputs

The quantity of goods or services produced by a business or economy in a given period.

Marginal Product

The additional output produced as a result of using one more unit of a particular input, keeping other inputs constant.

Total Product

The total quantity of output produced by a firm from a given quantity of inputs during a specific period of time.

Fixed Cost

Any cost that in total does not change when the firm changes its output.