The local coffee shop, Latté Café, has a frequent-buyer program that offers a 5% discount to customers who "like" their business page on Facebook. This allows the firm to price-discriminate because:
A) everyone will now know where to go for the best coffee in town.
B) increasing its customer base lowers prices for all consumers.
C) customers who are sensitive to price will take the time to go to the website.
D) only java-obsessed customers are eligible for the discount.
E) price-conscious customers are usually unwilling to sign up for discounts.
Correct Answer:
Verified
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