Question

In order to test a new customer loyalty program, a supermarket sends an email to its current customers in one of its regions of operation, inviting them to opt into the new program. After several months, management observes that participants in the new program are much more frequent shoppers than the average customer. Which of the following can management conclude from this experiment? Introducing the new loyalty program in all of its regions of operation will boost sales in the future.

Answer 1

Available Options Are:

A) Introducing the new loyalty program in all of its regions of operation will boost sales in the future.

B) The new loyalty program has boosted sales among its test participants.

C) Sales to customers that did not opt into the loyalty program have decreased.

D) None of the above

Answer:

Option A. Introducing the new loyalty program in all of its regions of operation will boost sales in the future.

Step-by-step explanation:

Option A is correct because the purpose of introducing loyalty program was to increase its sales which loyalty program has significantly increased. Hence the conclusion from the experiment must be that the company must introduce customer loyalty programs in all of its branches to increase its sales significantly.

Option B is incorrect because it was the result of loyalty program not what we must conclude from the result.

Option C is also incorrect because the purpose of loyalty program was that the company was willing to increase sales by only attracting potential customers who are frequent shoppers and now due to loyalty program, they will buy more from our shops. Hence it will not impact the other customers.