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ankoles [38]
3 years ago
15

Hertz Car Rental has a customer loyalty program called Gold Plus Rewards that rewards members with one point per dollar spent on

qualifying rentals. Free weekend rentals can be earned for as few as 500 points. By having a customer loyalty program, Hertz is using __________ marketing.
Business
1 answer:
Lerok [7]3 years ago
7 0

Answer:

Relationship

Explanation:

Relationship marketing refers to the marketing in which the company could maintain the loyalty with the customer and predict that the long term relationship could be maintained.

It could be in terms of price, discounts, redeem points, quality, services, after-sales services, etc

Since in the question it is mentioned that the 500 points could be earned so this represents a relationship marketing

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11 months ago
If the goal is to cut the total amount of smoke in half in the neighborhood, what isthe cost-effective way to do this?
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He should ask nieghbors to stop

Explanation:

Because asking nice is not a bad reason

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3 years ago
You would cut the mirrpoix ingredients smaller when making a fish fumet than when making a beef stock because the
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Read 2 more answers
Savanna Company is considering two capital investment proposals. Relevant data on each project are as follows: Project Red Proje
liberstina [14]

Answer:

(a) Cash payback period:

     Project Red = 5.5 years

     Project blue  = 4.6 years

(b) Net present value for project Red = $19,760

     Net present value for project Blue =$164,580

(c) Annual rate of return:

Project Red =11.36%

Project Blue  =18.75%

(d) Project Blue

Explanation:

Given Data;  

Project Blue Capital investment = $640,000

Project Red Capital investment = $440,000

Project Red  Annual Net income = $ 25,000.

Project Blue Annual Net income = $ 60,000

Annual depreciation Project Red = (440000/8)

                                                       = 55,000

Annual depreciation Project Blue = (640000/8)

                                                       =  80,000

Annual cash inflow project A = $ 80,000

Annual cash inflow project B = $140,000

(a)

Cash payback period = Initial investment/cash flow per period

Project Red = 440000 /80000

                   = 5.5 years

Project blue = 640000/ 140000

                    = 4.6 years

(b)

Project Red  Present value of cash inflows = 80000 ×5.747

                                                                       = $459,760

Project Blue Present value of cash inflows  =140000×5.747

                                                                        = 804580

Net present value for project Red = $459,760 - $440,000

                                                        = $19,760

Net present value for project Blue = 804580 - $640,000  

                                                         =$164,580

(c) Annual rate of return:

Project Red   = $25,000 / ($440000)/2

                       =11.36%

Project Blue =  $60000/(640000/2)

                    =18.75%

(d) Savanna should select Project Blue because it has a higher positive NPV and a higher annual rate of return. AND Project Blue has early cash back period also

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