(a)[4]
What evidence does the article provide to show that loyalty cards make markets imperfectly competitive?
(b)[4]
Analyse why a profit maximising retailer might be interested in the connection between utility, consumers’ loyalty and price elasticity of demand.
(c)[5]
Consider whether the article contains conflicting evidence about how effective loyalty cards that offer price discounts are.
(d)[7]
Discuss how the idea of rationality is applied in indifference curve theory of consumer behaviour.