Question

Every time Tom and Betty stay at a Marriott Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Marriott is using _____ to implement its retention strategy.

A. Financial bonds
B. Social bonds
C. Customization bonds
D. Structural bonds
E. Security bonds

Answer 1

Marriott uses Financial bonds in its retention strategy by offering points for stays that can be redeemed for various services, encouraging repeat patronage through monetary incentives.

Step-by-step explanation:

Marriott's incentive to award points to Tom and Betty for their stays, which they can later redeem for free rooms, meals, and other amenities, is an example of using Financial bonds to implement its retention strategy. Such loyalty programs establish a financial incentive for customers to continue using a company's services, by effectively offering a monetary return on their spending through points that have a certain cash value when redeemed. Moreover, this method is common in the hospitality industry and aims to encourage repeat business by ensuring that the cost of switching to a competitor feels like a loss of value.