How Does Coupon Clipping Allow for Price Discrimination

question 164

Multiple Choice

How does coupon clipping allow for price discrimination?

• A) Coupon mailers are sent out only to economically disadvantaged households.
• B) Businesses are able to reward those customers who truly want their product by offering them a better deal than the casual consumer.
• C) Because coupon users are less price-sensitive,they require large differences in price to be apparent before they will be convinced to make a purchase.
• D) One price is charged to people who put forth the effort to use the coupon,while another price is charged to consumers for whom the marginal cost of finding and using the coupon is greater than the marginal benefit of a lowered price.
• E) It allows for price discrimination only if the consumer engages in extreme couponing,where the risks outweigh the rewards.

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Definitions:

Whistle-Blowing

Disclosure of illegitimate practices by a current or former organizational member to some person or organization that may be able to take action to correct these practices.

Traditionally

In a way that conforms to long-established norms, values, or customs.

Personality Traits

Enduring characteristics that describe an individual's behavior, attitudes, and emotions, significantly influencing how they interact with the world.

Deaf Ear Syndrome

A situation where concerns, complaints, or feedback are consistently ignored or dismissed by those in positions of authority or power.