A National Chain of Bookstores Has Initiated a Frequent Buyer

question 37

Multiple Choice

A national chain of bookstores has initiated a frequent buyer program. If you buy a frequent buyer card for $10, you are entitled to a 10 percent discount on all purchases for 1 year. This practice is an example of:

• A) peak-load pricing.
• B) intertemporal price discrimination.
• C) two-part tariff.
• D) bundling.
• E) Both A and B are correct.

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Definitions:

Assumption

An accepted fact or statement taken for granted without proof.

Evolutionary Perspective

A theoretical approach in various fields that examines the evolutionary basis of behavior and traits.

Bonding Process

The development of a close, interpersonal relationship between individuals through emotional attachment, trust, and mutual understanding.

Survival

The ability to continue living or existing, especially under adverse or unusual conditions.