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

Question

Quizplus · Accepted Answer

Loyalty programs are a form of price discrimination because they offer different prices to different customers based on their loyalty. They also sometimes encourage customers to pay higher prices in order to earn more rewards or benefits from the program. However, they can also save money for the consumer by offering discounts or freebies.

Loyalty Programs, Such as Frequent Flyer Programs