Date: ___________________
Name: ____________________________
5.2 INCENTIVES TO BUY
DIFFERENT TYPES OF INCENTIVES:
1. Some businesses distribute ___________ ___________, or ads of
sale prices where the ads must be handed in to get the sale prices.
Manufacturers also distribute coupons for particular items that can be
redeemed at a variety of stores.
What are three ways that coupons are distributed?
2. A large hardware chain offers ________ ________, or money that can
be used towards future purchases at its stores. For a minimum purchase of
$2.00 and payment in cash, or by debit card, you get store money. The
amount is 1% of the total before taxes. For example, 1% of $35 is $0.35, or
35 cents.
Calculate the amount of store money you would receive if you paid cash for
each of these items.
a) a halogen headlight at $15.97
$749
b) a slide compound mitre saw at
c) a 12 V cordless drill at $199
d) an air hockey game at $399
3. Some department stores use _________ ________. If you present
your points cards when paying for items, you can earn 50 base points for
every before-taxes dollar spent.
a) How many points would you earn on each item listed here?
i) a $20 shirt
ii) a $120 bicycle
iii) a $15 video
iv) a $200 bookcase
b) At 50 base points for every before-tax dollar spent, what value of
merchandise would you need to purchase to earn 10,000 points?
4. PC offers the following PC Points when shoppers pay with the PC
Mastercard.
a) How many points would you have to earn to get $1 in free groceries?
b) If spending $250 a month earns you 30,000 points a year, how many
points would you earn a month?
INCENTIVES TO BUY PRACTICE
1. Credit Cards allow you to make purchases and pay for them later. Many
large retailers offer their own credit cards with incentives to
encourage you to use their cards. The hardware chain with store
money for cash payments offers a credit card with incentives.
With the card you receive 20% more store money than you do
when paying cash.
a) If you get 1% of the total in store money for paying cash, what % of
the total is given in store money when you use the card?
b) If you are not handed store money when you use card, how would
you accumulate store money?
2. Another credit card offered by a store with a points card has incentives
that entitle purchasers to 25 bonus points for every before-taxes dollar
spent using the credit card.
a) If you have a points card, you earn 50 base points for every beforetaxes dollar spent no matter how you pay. How many points would you earn
if you bought a $70 coat and didn’t use the credit card?
b) How many points would you earn if you used the credit card to buy
the $70 coat?
3. Shoppers Drug Mart has a program that uses Shoppers Optimum card.
Use the chart found at the back of this package to answer the following:
a) How many points are earned for every before-taxes dollar spent?
b) List 5 items on which points are not awarded and may not be redeemed
1.
2.
3.
4.
5.
c) Some items offer bonus points. How does a customer know whether
bonus points apply to an item?