Why Are Many Retail Firms Interested in Customer Loyalty Cards

question 145

Multiple Choice

Why are many retail firms interested in customer loyalty cards and programs?

• A)because roughly 80 percent of the profit comes from 20 percent of the sales
• B)because roughly 80 percent of a firm's customers are repeat business
• C)because roughly 50 percent of a firm's customers purchase 80 percent of the sales volume of the product
• D)because roughly 20 percent of a firm's customers purchase 80 percent of the sales volume of the product

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Definitions:

Conflict

A situation or issue characterized by disagreement, opposition, or clash between two or more parties.

Risk Averse

Characteristic of individuals or entities that prefer to avoid risks and opt for safer options when making decisions.

Loss Averse

A cognitive bias that describes why for individuals the pain of losing is psychologically about twice as powerful as the pleasure of gaining.

Benefits

The positive effects or advantages derived from a particular action, decision, or situation.