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

question 27

Multiple Choice

Many high-end hotel chains awards 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 application of one-to-one marketing is an example of:

• A) retaining loyal customers
• B) reinforcing competitive promotional decisions
• C) cross-selling other products and services
• D) designing targeted marketing communications
• E) inducing product trial by new customers

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Definitions:

Package Design

The process of creating the exterior of a product, including choices in material, form, graphics, and functionality, to improve marketability and usability.

Activity-Based Costing

A method of accounting that assigns costs to products based on the activities involved in their production, aiming for more accurate product costing.

Variable Cost

Costs that vary directly with the level of production or service activity, such as materials and labor.

Per Copy

"Per copy" refers to the cost or price of each individual unit when items are produced, sold, or purchased in multiple units or batches.