Question

Question:

The instructions next to the register state the following: For all purchases less than $400 ask, “Would you like to put this on your Barnes preferred customer card?” What is the most likely reason for these instructions?

A.To build brand recognition with your customers
B.To get customers to join the preferred customer program
C.To keep credit charges from the bank low
D.To receive more credit charges from the bank

Answer 1

C. To keep credit charges from the bank low

Explanation:

Given a graph of charges from the bank on different credit cards, you want to know why customers would be asked to use their Barnes preferred customer card for charges below $400.

Graph

The graph shows charges to the store by the bank are lower for use of the Barnes preferred customer credit card versus an MCVS credit card, but only for charges less than $400.

Hence, if the store wants to minimize what it has to pay the bank when its customers use a credit card, it makes sense to ask the customer if they'd like to use the Barnes preferred customer card for lower-value purchases.

The likely reason for the question is to keep credit charges from the bank low, choice C.

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