Marketing EssentialsChapter 26:
Pricing StrategiesMarket Tech Online ActionLoyalty Cards
Many retail stores offer discounts to customers who will sign up for a loyalty card, often carried in their wallet or worn on their keychain. At checkout, the customer swipes the card and he or she is offered discounted prices on certain items.
One possible use of this technology is targeted discounts. For instance, someone who regularly purchases Brand X Laundry Detergent might be sent a coupon worth a $1 discount on a bottle of Brand Y. Activity
Answer the following questions: Can you think of any possible downfalls to this approach to pricing? What are the most compelling reasons for offering such targeted discounts?  | 
