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A local utilities company has set up an online mechanism to pay bills that provides information to customers online so that the customers do not have to drive down to the local office.This service has improved customer satisfaction immensely and encouraged timely payment and resolution of issues.This strategy helps to reduce the company's:
Income Elasticity of Demand
An indicator showing the responsiveness of the amount of a product that customers want to buy to variations in their income levels.
Inferior Goods
Products whose demand decreases as the income of the consumer increases, often because consumers opt for higher quality alternatives when they can afford them.
Southwest Airlines
An American low-cost airline known for its unique business model and customer service approach.
New Markets
Market segments or geographical areas that were previously unexplored or underexploited by a business or industry.
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