Starbucks Is Building on Its Loyalty Card and Rewards Program

question 80

Multiple Choice

Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically.The app displays a bar code that the barista can scan.This is an example of:

• A) Market Penetration.
• B) Market Development.
• C) Market Diversification.
• D) Product Development.
• E) Global Marketing.

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Representative Heuristic

A cognitive bias in which an individual categorizes a situation based on how similar it is to their prototype of a particular event or behavior, often leading to errors in decision making or judgment.

Stroop Effect

A psychological phenomenon that demonstrates the interference in reaction time when the name of a color is printed in a color not denoted by the name.

Isolated Letters

Individual alphabetic characters presented separately from words or sentences, often used in reading or perception studies.