Drugstore Chain CVS Has an ExtraCare Program That Allows Customers

question 50

Multiple Choice

Drugstore chain CVS has an ExtraCare program that allows customers to register for a card that is swiped prior to each purchase and gives discounts and offers special in-store promotions.The most likely reason why CVS implemented this reward program is to:

• A) to reduce problems associated with cultural diversity
• B) to make sure the 80/20 principle is not influencing its activities
• C) to retain loyal customers
• D) to create cognitive dissonance
• E) to lessen the importance of customer service

---

Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members from current or retained earnings, usually in the form of cash.

Liability

Obligations or debts that a business owes to external parties, which need to be settled over time through the transfer of economic benefits.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, increasing the number of shares owned.