Most Airline Frequent Flyer Programs Reward the Most Frequent Flyers

question 25

Multiple Choice

Most airline frequent flyer programs reward the most frequent flyers with business class upgrades and flight lounge privileges.Airlines are using these rewards as a means of implementing _____ segmentation.

• A) lifestyle
• B) motive
• C) usage-rate
• D) demographic
• E) personality

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Definitions:

Equilibrium

An equilibrium where demand meets supply in the marketplace, stabilizing prices as a consequence.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

Equilibrium Wage Rate

The wage rate at which the supply of labor is equal to the demand for labor in the labor market.

Economic Rents

Payments to a factor of production in excess of what is needed to keep that factor in its current use, often due to limited supply or unique attributes.