Many food retailers offer loyalty cards that track purchases and offer free items to customers after a certain threshold of purchases.Is this an example of price discrimination?
A) Yes.The store is separating its customers based on how much they spend,and the free items represent a value to the customer that differs from that which is received by other types of patrons.
B) Yes.Since the store is tracking purchases,it can offer individual customers discounted prices on items that are purchased most frequently.
C) No.Since every customer has the option to receive a loyalty card,there is no differentiation in benefits received by customers.
D) No.Since the rewards aren't a discount in price,it wouldn't qualify as price discrimination.
E) No.Because the retailer might discontinue the card at any time,the customer may never receive the earned free items.
Correct Answer:
Verified
Q129: Despite the fact that a single price
Q130: Which of the following situations is considered
Q131: A common feature among perfect competition and
Q132: Dine-in restaurants typically have their lowest business
Q133: The local coffee shop,Latté Café,has a frequent-buyer
Q135: As the quantity of different prices charged
Q136: A potential complication for successful price discrimination
Q137: Teryn booked a flight to Boston for
Q138: _ transfers the consumer surplus under perfect
Q139: Airlines have first-class or business-class seating,for which
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents