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bravo airplane

by jsasipriya » Sat Jul 03, 2010 3:49 pm
company Alpha buys free-travel coupons from people who are awarded the coupons by Bravo airlines for flying frequently on Bravo airplanes. The coupons are sold to people who pay less for the coupons than they would pay by purchasing tickets from Bravo. This marketing of coupons results in lost revenue for Bravo.

To discourage the buying and selling of free travel coupons, it would be best for Bravo to restrict the

A) number of coupons that a person can be awarded in a particular year
B) use of the coupons to those who were awarded the coupons and members of their immediatge families
C) days that the coupons can be used Monday through Friday
D) amount of time that the coupons be used after they are issued
E) number of routes on which travelers can use coupons
Courtest: OG verbal edition 11

I didn't understand the explanation that was given for OA B
Can someone help me on this? Thanks!
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by albatross86 » Sat Jul 03, 2010 9:41 pm
Alpha buys Bravo free-coupons from Bravo's frequent flyers, and then sells them to other people at rates cheaper than a normal Bravo ticket. This results in Bravo losing revenue.

How can Bravo restrict the trade of such free-coupons?

A. This means any one individual would only be able to receive a certain number of coupons in a year. However nothing stops him from selling all of these coupons to Alpha.

B. Exactly. If the coupons can only be used by the frequent flyers and their immediate family, Alpha would not be able to purchase the coupons and transfer them to a random customer. This would deter the trade of such coupons and ensure they are used by the frequent flyers themselves.

C. Alpha could still buy the coupons and inform their customers that they would have to reimburse the coupon on a weekday.

D. Alpha could buy them and inform their customers of the expiry date - this doesn't remove the financial incentive.

E. Again, Alpha could still buy the coupons and sell them to people seeking tickets for those particular routes that are redeemable.

Pick B.
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by bdiwakarteja » Sat Jul 03, 2010 10:11 pm
jsasipriya wrote:
company Alpha buys free-travel coupons from people who are awarded the coupons by Bravo airlines for flying frequently on Bravo airplanes. The coupons are sold to people who pay less for the coupons than they would pay by purchasing tickets from Bravo. This marketing of coupons results in lost revenue for Bravo.

To discourage the buying and selling of free travel coupons, it would be best for Bravo to restrict the

A) number of coupons that a person can be awarded in a particular year
B) use of the coupons to those who were awarded the coupons and members of their immediatge families
C) days that the coupons can be used Monday through Friday
D) amount of time that the coupons be used after they are issued
E) number of routes on which travelers can use coupons
Courtest: OG verbal edition 11

I didn't understand the explanation that was given for OA B
Can someone help me on this? Thanks!
My pick would be B as no other option explains the best way to avoid alpha using the coupons.
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by jsasipriya » Sun Jul 04, 2010 5:12 pm
Thank you very much for your explanation. At first, I didn't understand the stimulus. I was confused between Bravo & Alpha. It's clear now.
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