Chain Shop

question 72

Multiple Choice

Chain Shop.com runs on a membership business model,in which an existing member gets a 20 percent rebate if he or she introduces or invites a potential customer to the site.This rebate gets activated once the new member makes a purchase on the site.This is an example of _____.

• A) reference pricing
• B) captive pricing
• C) a random discount
• D) a referral discount

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Definitions:

Demand

The volume of a commodity or service that purchasers are prepared and can afford to buy across various price points within a designated timeframe.

Supply

The total amount of a good or service that is available for purchase at various prices in a given market.

Economy

A system of production, distribution, and consumption of goods and services in a particular geographic region.

Demand

Demand is an economic principle referring to a consumer's desire and willingness to pay a price for a specific good or service.