Homely Hotels has a customer loyalty program in which for every four n

Question

Homely Hotels has a customer loyalty program in which for every four nights a customer spends at a Homely Hotel, he or she receives a coupon good for one free night at any Homely Hotel. Recently people have begun selling these coupons on the Internet for less than the cost of a night at a Homely Hotel. This marketing of coupons has resulted in decreased revenue for the Homely Hotel chain.

To discourage this undesirable trade in free-stay coupons, it would be best for Homely Hotels to restrict:

A. The number of coupons a customer can receive in one year.

B. Use of the coupons to the specific hotel in which they were issued.

C. The valid dates of the coupons to only the month immediately following the date of issue.

D. Use of the coupons to the recipient or people with the same last name.

E. Use of the coupons to Homely Hotel franchises that charge an equal or lesser nightly rate than the franchise that issued the coupon.

Source:  McGraw-Hill's

lmuenzel · Answer

Homely Hotels has a customer loyalty program in which for every four nights a customer spends at a Homely Hotel, he or she receives a coupon good for one free night at any Homely Hotel. Recently people have begun selling these coupons on the Internet for less than the cost of a night at a Homely Hotel. This marketing of coupons has resulted in decreased revenue for the Homely Hotel chain.

To discourage this undesirable trade in free-stay coupons, it would be best for Homely Hotels to restrict:

A. The number of coupons a customer can receive in one year.  Still possible to sell them. 
B. Use of the coupons to the specific hotel in which they were issued.  Still possible to sell them. 
C. The valid dates of the coupons to only the month immediately following the date of issue.  Still possible to sell them 
D. Use of the coupons to the recipient or people with the same last name.  Very unlikely to get a buyer for the voucher. Perfect! 
E. Use of the coupons to Homely Hotel franchises that charge an equal or lesser nightly rate than the franchise that issued the coupon.  Still possible to sell them

AkshdeepS · Answer

Not a good argument. Even the correct answer choice is not perfect. What if people sell coupons in family and relatives? It is easier to plan this way to sell coupons. C seems much better than D

sandman13 · Answer

I got this correct... but how is this an inference question?

Sajjad1994 · Answer

Official Explanation

Answer D  presents a substantial impediment to unauthorized trade in the coupons, while still retaining the customer loyalty benefits for which the program was presumably created. The other answers either fail to address the unauthorized trade in a meaningful way or significantly reduce the value of the customer loyalty program.

ANSWER: D

VerbalBot · Answer

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Homely Hotels has a customer loyalty program in which for every four n

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