American Airlines' frequent-flyer program awards AAdvantage Miles to passengers when they fly with its airline. When passengers accumulate a certain amount of miles, they can redeem them to get discounts on flights. Why has American Airlines adopted this frequent-flyer initiative?
A) To increase immediate profits
B) To improve the passenger's in-flight experience
C) To develop positive relationships with customers
D) To reduce the number of customer complaints
E) To improve its marketing mix

Question

Quizplus · Accepted Answer

American Airlines adopted the frequent-flyer program to develop positive relationships with customers. This initiative helps in incentivizing passengers to choose American Airlines over its competitors repeatedly, which leads to increased loyalty and positive word-of-mouth marketing. It is a strategy to retain customers and maintain long-term profits rather than just focusing on immediate gains.

American Airlines' Frequent-Flyer Program Awards AAdvantage Miles to Passengers When