Final answer:
Pam was offered a cumulative quantity discount, which gives her a free haircut after nine paid haircuts, to encourage repeat business and build customer loyalty.
Step-by-step explanation:
The discount Pam was informed about at Altimo's Hairdressers is a form of a loyalty program where the customer receives a free service after a certain number of purchases. This type of discount is known as a cumulative quantity discount. The idea here is to encourage repeat business by rewarding customers with a free item or service after they have purchased a set number of that item or service. In this case, after Pam receives nine haircuts, she is rewarded with her tenth haircut for free. Such programs are common in service industries, including hairdressing, to build customer loyalty and incentivize frequent visits.