Drugstore Chain CVS Has an ExtraCare Program That Allows Customers

question 138

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

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Definitions:

Actor-Observer Effect

A psychological tendency to attribute one’s own actions to external factors while attributing others’ actions to their internal characteristics.

Self-Serving Bias

The common human tendency to attribute positive events to their own character but attribute negative events to external factors.

Personal Experience

An individual’s direct observation or participation in events, forming the basis for knowledge, attitudes, or beliefs.

Inherited

The transfer of physical, genetic, or characteristic traits from parents to offspring through genes.