A company sells a mattress, which is claimed to promote good health.It also convinces customers to become part of a club where they receive commissions if they get other people to join the club or buy mattresses.This is an example of:
A)bid rigging.
B)bait-and-switch.
C)predatory pricing.
D)referral selling.
E)pyramid selling.

Question

Quizplus · Accepted Answer

The description fits the practice of referral selling, where the company incentivizes customers to refer other people to join or purchase products in exchange for commissions or rewards. This is not necessarily illegal, as long as it is not a pyramid scheme, where the focus is solely on recruiting members rather than actual sales of products.

A Company Sells a Mattress, Which Is Claimed to Promote