Promotional Schemes Like Frequent Shopper Programs Provide Incentives to Loyal

question 135

Multiple Choice

Promotional schemes like frequent shopper programs provide incentives to loyal buyers. Considering Porter's Five Forces model, such offers will:

• A) reduce the threat of new entrants.
• B) decrease the rivalry among competitors.
• C) decrease the bargaining power of the supplier.
• D) increase the threat of substitute products.

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Definitions:

Production Rate

The speed at which goods are manufactured within a specified time period.

Demand Rate

The rate at which goods or services are required or consumed by the market or a specific customer over a given time period.

Linear Programming

A mathematical method for determining a way to achieve the best outcome, such as maximum profit or lowest cost, in a given mathematical model for some list of requirements represented as linear relationships.

Aggregate Plan

A plan that outlines a company's production rates, inventory, staffing levels, and other variables to meet forecasted demand while minimizing costs over a specific time period.