Varion Air, an Airline Company, Is Providing Promotional Offers to Mark

question 105

Multiple Choice

Varion Air, an airline company, is providing promotional offers to mark its first anniversary. Its customers will be given a complimentary air ticket on the purchase of three business class tickets. In this case, which of the following is true of its promotional strategy?

• A)It will satisfy the flyers and not the management of Varion Air.
• B)It may not be effective because promotion does not apply to services.
• C)It may increase the sales of Varion Air.
• D)It will work independently of the other three elements of the marketing mix.

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Definitions:

Surplus

A condition where the quantity supplied of a product exceeds the quantity demanded at the market price.

Rent Control

A government policy or law that limits the amount landlords can charge for leasing a home or apartment to prevent rapid increases in housing costs.

Equilibrium Prices

The market price at which the quantity of a good or service demanded equals the quantity supplied, leading to market balance.

Rental Housing

This term refers to properties available for rent, providing accommodation to individuals or families in exchange for regular payments to the owner or landlord.