Every Time Tom Buys a Litre of Milk He Gets

question 55

Multiple Choice

Every time Tom buys a litre of milk he gets a stamp, which he sticks on a card he carries in his wallet. When he has 10 stamps, he gets a free litre of milk. This sort of program to encourage repeat business is a good example of which of the following?

• A) a developing strategic alliance
• B) customer maximization
• C) relationship management
• D) profit maximization

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Definitions:

Social Discounting Bias

The tendency to undervalue the future well-being or outcomes of others compared to one's own immediate needs or desires.

Defense Mechanism

Psychological strategies employed by individuals to cope with reality and to maintain self-image.

Social Customs

Established traditions, practices, and behaviors that are widely accepted and followed by a specific society or cultural group.

Job Burn-Out

A state of physical, emotional, or mental exhaustion combined with doubts about competence and the value of work.