AIRLINE MINI CASE: Transatlantic Airlines Flies Between Popular Destinations in the US

question 73

Multiple Choice

AIRLINE MINI CASE: Transatlantic Airlines flies between popular destinations in the US and western Europe, and claims to deliver "a first class experience for every passenger." All ticket purchases are made on-line, and users of the Transatlantic web site must register before they search for flights.Transatlantic uses this information to determine which consumers are generating the most profits for the company, which services they purchase most frequently, and which services they are potentially interested in but are not purchasing.This information is then used to make specific promotional offers to profitable customers in an attempt to retain their business and to expand the range of flight services that they purchase.Transatlantic also uses this information to provide unexpected perks to highly profitable customers, like free upgrades to first class.
-In the AIRLINE MINI CASE,Transatlantic Airlines identifies the most profitable customers and offers them specific incentives,a practice known as ________.

• A) social marketing
• B) customer profitability-focused marketing
• C) market targeting
• D) market segmentation
• E) product positioning

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Definitions:

Response

A reaction to a specific stimulus or situation, which can be psychological, physiological, or behavioral.

Delay

The act of postponing or holding off an event, action, or operation.

Avoidance Conditioning

A learning process in which an individual learns to prevent the occurrence of a negative or unpleasant outcome.

Classical Conditioning

An instructive procedure where two stimuli are regularly associated, causing a response at first provoked by the second stimulus to later be provoked by the first stimulus exclusively.