What Are Airlines Trying to Achieve When They Use Frequent

question 99

Multiple Choice

What are airlines trying to achieve when they use frequent flyer programs, which give customers points that can be redeemed for free travel, rental cars, and other merchandise?

• A) to get consumers to try their product
• B) to create product awareness
• C) to provide information
• D) to increase the amount and frequency of use

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Definitions:

Contribution Margin Ratio

The percentage of sales revenue that exceeds variable costs and contributes to covering fixed costs and generating profit.

Target Monthly Income

Target monthly income is the specific amount of income an individual or business aims to earn within a month to meet budgeting goals or financial obligations.

Fixed Costs

Expenses that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Normal Operating Range

The range of operational activity levels within which a business or machine can efficiently and effectively operate.