Meaning:
Incentives are the kind of motivation, which drives us to
behave in a certain way, while preferences are your needs, wants and desires.
Types of Incentives:
- · Extrinsic incentives: It comes from outside a person. It can be monetory incentives which includes bonuses, income, cash rewards. Or it can be non-monetary such as fame, power or it can be social status.
- · Intrinsic Incentives: These types of incentives comes from inside a person. Like getting satisfaction from a work is intrinsic in nature. It is also known as psychologic incentives.
Example:
Mr. Kishore Biyani’s
Future group had a different marketing strategy. Future group provides a privilege
card in which a consumer can get benefit if he buys the product from
Pantaloons, Big bazaar, Central etc or he takes the service from HP petrol
Pumps. A customer gets 1 point for every ₹100 he/she gives for the products or
the services he takes from the Future group. In this way they started
acquiring customers and added customer lifetime value. From that points a customer can get extra benefits
such as availing extra offers and discounts when they buy for the next time.
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