An airline that divides its customers into VIP, Preferred, and Regular customer sets is practicing what principle?
A) Customer prioritization
B) Customer displacement
C) Customer segmentation
D) Customer clustering

Question

Quizplus · Accepted Answer

The airline is practicing customer segmentation by dividing its customers into different groups based on their level of importance or frequency of travel. This allows the airline to tailor its services and marketing efforts to each group, ultimately improving customer satisfaction and maximizing profits.

An Airline That Divides Its Customers into VIP, Preferred, and Regular