When Scentsation Introduced a New Air Freshener,the Company Sent Emails

question 63

Essay

When Scentsation introduced a new air freshener,the company sent emails to people asking for referrals.People referring five friends to the company's promotional website received free merchandise and were entered into a sweepstakes to win a year's supply of the product.Explain what this technique is and why marketers use it.

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Definitions:

Equilibrium Quantity

The amount of goods or services supplied is exactly equal to the amount of goods or services demanded at a given price.

Quantity Demanded

The overall volume of a good or service that consumers intend and can afford to buy within a specific period at a particular price.

Complementary Good

A product or service that is typically used together with another product, such that an increase in demand for one leads to an increase in demand for the other.

Change in Demand

A change in the quantity demanded of a good or service at at least one price that is caused by factors other than a change in the price of that good or service.