Correct Response: B. Affiliate programs are a form of Internet marketing in which revenue is earned by recommending other similar businesses' products on your web site. For example, a person who has an online business selling homemade jams and jellies may provide a link to sites that sell homemade pickles. The jam and jelly business receives a commission when people follow a link from the jam and jelly site and purchase something from the pickle site. Of choices listed, this is most similar to word-of- mouth advertising, since the affiliate site is providing a recommendation to its customers. A loss leader approach (A) is when a seller reduces product price to below market cost with the anticipation that customers will be lured to the store or site and will purchase other items while shopping. A subscription service is when a customer pays a fee to have access to a service, such as streaming music or television (C). Point-of-sale is a marketing strategy that involves placement of products at the point of sale, such as on the checkout counter at a supermarket, to persuade customers to buy a product on impulse (D).
