Many High-End Hotel Chains Award Points for Every Dollar Spent

question 38

Multiple Choice

Many high-end hotel chains award points for every dollar spent in one of their hotels.Customers who earn a high number of points are given special privileges that may include upgraded hotel rooms or several free nights.This is an example of the leveraging of customer information to:

• A) retain loyal customers
• B) reinforce competitive promotional decisions
• C) cross-sell other products and services
• D) design targeted marketing communications
• E) induce product trial by new customers

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Definitions:

Distributional Justice

The philosophical and theoretical discussions and principles concerning the fair allocation of goods among members of society.

Income Redistribution

The transfer of income from certain individuals or groups to others through mechanisms such as taxation, welfare, and subsidies to achieve economic equity.

Utilitarian Justice

A principle in ethics and political philosophy that actions are right if they are useful or for the benefit of a majority, focusing on outcomes that maximize happiness or reduce suffering.

Dollar Worth

The value of the United States dollar in terms of goods, services, or other currencies.