The Presence of Loyalty Programs Reduces the Switching Costs of a Product

question 3

True/False

The presence of loyalty programs reduces the switching costs of a product or service.

---

Definitions:

Average Product

The output produced, on average, by each unit of a variable input, such as labor.

Labor

Human effort, whether physical or mental, exerted in the production of goods and services.

Car Detailing

A service performed on a vehicle to restore its cleanliness and appearance, both inside and out, often including paint care, interior detailing, and wheel cleaning.

Marginal Product

The increase in output that results from a one-unit increase in the quantity of a single input, holding the quantities of all other inputs fixed.