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Frequent-buyer clubs and frequent-flyer programs are used mainly to do what?
ABuild long-term relationships with customers
BCut the cost of producing each unit sold
CTest a new product with a small audience
DMeet a legal rule on customer disclosure
Answer & Solution
Correct answer: A. Build long-term relationships with customers
1. Frequent-buyer clubs are named as an excellent way to build long-term relationships.
2. Airlines award a free ticket after a set number of miles, and partners give miles too.
3. Buyers keep returning because they want the reward, which sustains the relationship.
4. Such clubs do nothing to lower unit production cost and are not a research or legal device.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.1 The Marketing Concept_
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