Which of the Following Is a Device That Keeps Track

question 69

Multiple Choice

Which of the following is a device that keeps track of the amount of purchasing a consumer has had with a given marketer and offers a reward once some level is reached?

• A) commitment program
• B) customer share program
• C) consistency program
• D) loyalty program

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Definitions:

Mental Accounting

The tendency people have to create separate “mental boxes” (or “accounts”) in which they deal with particular financial transactions in isolation rather than dealing with them as part of an overall decision-making process that would consider how to best allocate their limited budgets across all possible options by using the utility-maximizing rule.

Price Changes

Variations in the cost of goods and services over time, influenced by inflation, supply and demand, and market dynamics.

Risk Averse

A description of an individual or entity's preference for avoiding loss over making a gain, indicating a higher value placed on avoiding risk than on potential rewards.

Prospect Theory

A behavioral economic theory proposing that people value gains and losses differently, leading to value-driven decision-making rather than strictly rational.