Question:
A bookstore introduced a loyalty card that gives a discount on every tenth purchase, and afterwards its sales rose. Which of the following is an assumption behind the decision to launch this card?
A bookstore introduced a loyalty card that gives a discount on every tenth purchase, and afterwards its sales rose. Which of the following is an assumption behind the decision to launch this card?
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A 'buy ten, get a discount' scheme relies on people coming back repeatedly.
Updated On: Jul 8, 2026
- Customers would make repeat purchases in order to earn the discount.
- The store sells only books and nothing else.
- Every customer signed up for the loyalty card.
- Discounts always reduce the store's overall profit.
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The Correct Option is A
Solution and Explanation
Step 1: Find the mechanism.
The card rewards the tenth purchase, so it only helps sales if customers keep buying to reach that reward.
Step 2: State the assumption.
The store assumes customers will make repeat purchases to earn the discount.
Step 3: Reject the rest.
Selling only books, every customer signing up, and discounts always cutting profit are not needed for the plan. Option 1 is the assumption.
The card rewards the tenth purchase, so it only helps sales if customers keep buying to reach that reward.
Step 2: State the assumption.
The store assumes customers will make repeat purchases to earn the discount.
Step 3: Reject the rest.
Selling only books, every customer signing up, and discounts always cutting profit are not needed for the plan. Option 1 is the assumption.
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