Every time Tom buys a litre of milk he gets a stamp, which he sticks on a card he carries in his wallet. When he has 10 stamps, he gets a free litre of milk. This sort of program to encourage repeat business is a good example of which of the following?
A) a developing strategic alliance
B) customer maximization
C) relationship management
D) profit maximization

Question

Quizplus · Accepted Answer

This loyalty program is designed to maintain a long-term relationship with the customer by incentivizing repeat purchases. It falls under the category of relationship management, where the focus is on building and strengthening customer relationships through personalized and value-added offerings. It may also lead to customer maximization (repeat purchases) and ultimately profit maximization for the business. However, C is the most fitting choice as it specifically refers to the concept of managing relationships with customers. A developing strategic alliance is not applicable in this scenario.

Every Time Tom Buys a Litre of Milk He Gets