Final answer:
The primary promotional objective of the Blockbuster Rewards Card is to foster customer loyalty and encourage repeat business by offering free rentals and discounts. This contrasts Netflix's misjudgment of customer preferences for physical DVDs over streaming in 2012.
Step-by-step explanation:
The primary promotional objective of programs such as the Blockbuster Rewards Card is to increase customer loyalty and repeat business. By offering tangible benefits such as a free rental after a set number of rentals and various discounts, Blockbuster intends to encourage customers to keep returning to their stores instead of considering competitor services. These loyalty programs are designed to create a psychological bond and a sense of reward for regular customers, which in turn can lead to more consistent revenue streams for the company.
In the context that has been provided regarding customer behavior and the rise of digital streaming, it's evident that many customers still valued the convenience and tangibility of physical DVDs back in 2012. Companies like Netflix misjudged this sentiment, assuming that the demand for DVD rentals would plummet in favor of online streaming. The continued preference for physical discs among a significant portion of the market helped businesses such as Redbox remain competitive against streaming giants.