Frequent-User Programs Are Designed to Reward

question 46

Multiple Choice

Frequent-user programs are designed to reward:

• A) brand referral.
• B) brand equity.
• C) brand switching.
• D) brand loyalty.

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Definitions:

Cost of Equity

The anticipated reward that a corporation offers to its stockholders in exchange for the risk they take by investing their capital.

Stock Sells

The act of disposing of shares of stock or equity in a corporation, typically in exchange for cash or other compensation.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and is often used to assess the cost of funding.

Risk-Free Rate

The theoretical return of an investment with zero risk, often represented by the yield on government securities like U.S. Treasury bonds.