Airlines' Frequent Flyer Programs and Retailer Loyalty Schemes Are Both

question 46

Multiple Choice

Airlines' frequent flyer programs and retailer loyalty schemes are both examples of efforts to:

• A)Offer disguised price reductions to customers
• B)Establish product differentiation by measures that reward customer loyalty
• C)Establish competitive advantage that failed because they could be easily imitated by competitors
• D)Promote a company's product to new customers

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Definitions:

Property Rights

The legal rights to use, control, and derive benefits from a property or resource, including the right to exclude others from doing so.

Production Possibilities Frontier (PPF)

A curve depicting all maximum output possibilities for two or more goods given a set of inputs, representing the trade-offs of choosing one good over another.

Output Combination

A specific mix of goods and services produced by an economy or firm, reflecting the allocation of resources.

Production Possibilities Frontier (PPF)

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), assuming all inputs are fully employed.