At a local frozen yogurt shop, customers can present a card to be punched at the time of each purchase. Once they have made 10 purchases, they can get a free small frozen yogurt. What type of sales promotion does this represent?
A) Premiums
B) Coupons
C) Rebates
D) Frequent-user incentives
E) Samples
Question 2
Bernard and Hope Freeman purchased a Jump and Play franchise in 2013. The indoor inflatable park featured seven inflatables, three party rooms, and a small concession area. There were 25 Jump and Play franchises across the United States, which were popular venues for birthdays and team parties. Early on, the Freeman's Jump and Play location performed well, and party rooms were booked nearly every weekend. However, in 2015 the Freemans were forced to close their Jump and Play franchise. The Freemans' insurance costs were more expensive than they anticipated, and competition from other inflatable parks took a toll on the Freemans' profits. This is an example of how:
A) expanding a franchise too quickly can cause failure.
B) a franchise gives owners too much control over the business.
C) start-ups have a higher success rate than franchises.
D) owning a franchise does not guarantee success.
E) the franchise dictates all aspects of the business.
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