Which of the following statements is True of frequent-shopper programs?
A) They are highly beneficial for building long-term customer loyalty.
B) The discounts offered appeal mostly to price-conscious customers.
C) Customers are able to clearly differentiate the programs offered by different retailers.
D) Competitive advantages gained from these programs are sustainable.
E) Effective frequent-shopper programs are easy to develop.

Question

Quizplus · Accepted Answer

Most programs simply offer customers price discounts that are available to all customers that register for the programs. These discounts are appealing to price-conscious shoppers but not necessarily to the high-CLV shoppers.

Which of the Following Statements Is True of Frequent-Shopper Programs