The Redemption Rate for Refunds Is Lower Than That for Coupons

question 107

Multiple Choice

The redemption rate for refunds is lower than that for coupons because:

• A)the payoff is smaller.
• B)the reinforcement is immediate.
• C)more effort is required.
• D)the payoff is larger.
• E)the offers tend to expire very quickly.

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Definitions:

Hippocampus

A region of the brain that is associated with memory forming, organizing, and storing.

Amygdala

A part of the brain's limbic system involved in emotion regulation, especially fear and pleasure responses, playing a critical role in forming emotional memories.

Basal Ganglia

A group of structures located deep within the cerebral hemispheres involved in controlling voluntary motor movements, procedural learning, and emotions.

Episodic Memory

A type of long-term memory that involves recollection of specific events, situations, and experiences.