Regarding Supermarket Loyalty Cards,a Shopper Provides Demographic and Shopping-Related Information

question 8

Multiple Choice

Regarding supermarket loyalty cards,a shopper provides demographic and shopping-related information when applying for the cards.At check-out,the UPC-coded loyalty cards are swiped prior to scanning the items for purchase.Typically,databases gather the list of items that are scanned at check-out and match them to the shopper's records.

• A)Maintaining these databases reduce grocery-store profits by 11 percent each year.
• B)In 2004,Congress proposed legislation limiting loyalty card programs.
• C)The supermarkets' data from these loyalty programs cannot be sold to syndicated research firms.
• D)Forty percent of supermarkets have reported increased sales as a result of implementing their loyalty card programs.
• E)Most consumers are unaware that the supermarkets have all this information on them.

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Definitions:

Semiannual Rate

A rate of interest or growth that is calculated or applied twice per year.

Present Value

The contemporary valuation of an upcoming sum of money or cash flows over time, factoring in a designated rate of return.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Par Value

The stated value of a bond or stock by the issuing entity, which may not mirror its actual value in the market.