Contract Formation Issue -- Hunt Case Study

Open, View, and/or
Download this Document

Total Length: 615 words ( 2 double-spaced pages)

Total Sources: 0

Page 1 of 2

Accessed online from:

http://www.nytimes.com/2011/10/18/business/airlines-focus-rewards-on-those-who-pay-more.html?_r=1&pagewanted=print

Recently, American commercial airlines have begun changing their frequent flyer programs to defray some of the increased costs of operations, largely because of high fuel costs. In general, the frequent flyer programs are examples of marketing concepts designed to promote customer brand loyalty, in this case, to particular airlines. The idea is that if airlines provide a benefit that is valued by its customers for using their product (airline flights) repeatedly, customers are more likely to make the effort to continue using the same airline instead of choosing flights by other criteria, such as convenience or even the bottom line. In principle, customers factor in the price and any inconvenience of using a specific airline as part of the benefits equation based on the value to the customer of the rewards furnished in return by the airline for customer loyalty. Usually, airlines issue free tickets for flights and/or free upgrades based on the total number of eligible miles a customer flies with them.

Lately, the major carriers have begun reducing the availability of that perk by offering it based more on the amount of money spent by customers instead of strictly on the total number of miles they fly. The rationale is simply that revenue actually spent is a better measure of customer loyalty than miles flown.

Stuck Writing Your "Contract Formation Issue -- Hunt" Case Study?

View All Our Example Contract Formation Issue -- Hunt Case Study

Have A Custom Example Essay Written

Frankly, it is surprising that airlines have taken so long to make this realization because it is common in other industries. Credit cards, for example, reward customers for how much they spend using their cards and not based on how many purchases they make. Likewise, Las Vegas hotels "comp" customers who spend a lot of money gambling and not based on how many nights they stay in their hotels......

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Contract Formation Issue -- Hunt" (2011, October 18) Retrieved May 16, 2025, from
https://www.aceyourpaper.com/essays/contract-formation-issue-hunt-46557

Latest MLA Format (8th edition)

Copy Reference
"Contract Formation Issue -- Hunt" 18 October 2011. Web.16 May. 2025. <
https://www.aceyourpaper.com/essays/contract-formation-issue-hunt-46557>

Latest Chicago Format (16th edition)

Copy Reference
"Contract Formation Issue -- Hunt", 18 October 2011, Accessed.16 May. 2025,
https://www.aceyourpaper.com/essays/contract-formation-issue-hunt-46557
   

Open, View, and/or
Download this Document
order custom essay example