Final answer:
Loyalty programs are used by businesses to increase customer approval, aiming for repeat customers and a solid reputation which can lead to increased prices and trust.
Step-by-step explanation:
Businesses implement loyalty programs because they wish to build customer approval and foster repeat business, which is essential for a company's success. The thought process behind these programs is that firms desire repeat customers who are more inclined to refer others to the business, thereby enhancing the company's reputation. A solid reputation means customers are less concerned about product quality and may even be willing to pay more. For instance, a grocery store with a strong reputation typically can charge higher prices than a temporary vendor, due to the trust that has been built with customers.