Which of the Following Is True of Loyalty Cards or Programs

question 42

Multiple Choice

Which of the following is true of loyalty cards or programs?

• A) They do not work in a two-tiered pricing system.
• B) They cannot tell much about customer groups' demographics.
• C) They can be used to learn more about customer groups' shopping patterns.
• D) They are most likely to change the loyalty of consumers with a strong economic orientation.

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Definitions:

Expected Value

The weighted average of all possible values of a random variable, considering the probabilities of each outcome.

Fixed Salary

A set amount of money paid to an employee by an employer at regular intervals, regardless of hours worked, providing income stability.

Expected Value

A statistical concept that represents the average outcome when the same event is repeated multiple times.

Utility

In economics, the satisfaction or pleasure that consumers derive from consuming goods or services.