How Future Group Privilege Card acted as an Incentive for purchasing products

There is a concept/principle in Economics called People Respond to Incentive. This is because rational people think at the margin, they compare the cost and the benefits of their spendings. There is incentive from buyer’s point as well as from seller’s point. Incentives for buyers is the price, quality of the product, quantity of the product, satisfaction derived by consuming, brands, what extra feature they are getting with the product, location of the market, and the re-sale value of the product. Incentives for sellers is at what price they are willing to sell, how they are fulfilling the wants of the customer, how unique is their product, goodwill in the market, and profit making.

Everyone responds to incentives while making any decision. This can be best illustrated through my real life example of how the future group’s privilege card has acted as an incentive for buying products under its umbrella brand.

When I first went for shopping in one of the retail shop under future group, they offered for a privilege card free of cost in which points will be added every time I shop from any of the future group’s retail store. This made me subscribe for this privilege card because more we shop using this privilege card, the more points we will get which in turn will provide discounts on the products we purchase. Even if the retail store is offering a discount, the owner of this privilege card will get additional discounts by providing their privilege card’s details in the billing counter. So, every time I thought of purchasing any product which is available in any of the future group’s retail store, I don’t have think once, I just go and purchase and because of the additional discount I end up purchasing more products.