Final answer:
Harry's consistent choice to fly with United Airlines to accumulate miles for a free trip is an example of a loyalty program. Loyalty programs are used by companies to foster customer retention by offering rewards for repeated business, as seen with credit card companies offering air miles for purchases and consumers .
Step-by-step explanation:
When Harry almost always flies United Airlines because he is saving up miles to earn a free trip for his next vacation, he is engaging in a loyalty program. Loyalty programs are marketing strategies designed by companies to encourage customers to continue using their services or purchasing their products. By offering rewards, like miles for air travel, customers are incentivized to remain loyal to the company.
According to the provided information, a significant percentage of credit card users prefer cards that offer air miles for every dollar they charge. This reflects a trend where individuals capitalize on their spending habits to earn rewards, which can be redeemed for various benefits, such as free air travel. Thus, the credit card companies are using a similar loyalty program model to attract high-spending customers.
Similarly, the behavior of over withholding on taxes to receive a refund can also be seen as a form of a psychological reward system, although not an official loyalty program. By overpaying taxes, individuals ensure a refund, which can feel like a bonus or reward, despite being an interest-free loan to the government. This behavior aligns with the logic behind loyalty programs wherein individuals find satisfaction in receiving perceived benefits.