Loyalty Programs, Such as Frequent Flyer Programs

question 116

Multiple Choice

Loyalty programs, such as frequent flyer programs:
I. are a form of price discrimination.
II. save money for the consumer.
III. sometimes encourage customers to pay higher prices.

• A) I only
• B) II only
• C) I and III only
• D) I, II, and III

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Definitions:

Negatively Reinforced

Refers to the process of increasing a behavior by removing or avoiding a negative outcome or stimulus.

Positively Reinforced

The process of increasing the likelihood of a behavior by following it with a desirable outcome or reward.

Unpleasant Stimulus

A negative or harmful stimulus that causes discomfort or aversion in an individual.

Punished

The act of imposing a penalty or negative consequence on someone or something as a result of their behavior or actions.