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You order a $20 sweatshirt online for a Father’s Day gift. The shipping charge is $10. You can get free shipping if your order totals $25 or more. Consequently, you order a $5 bobble head doll, even though neither you nor your father really likes bobble head dolls. This is an example of____________.

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Answer:

This is an example of incentive.

Explanation:

An incentive is a motivator to do something, usually by giving a reward or reducing a cost in a transaction. In this instance there is an incentive to buy more goods from the online store in order to avoid shipping charges of $10.

Although nobody in the house needs the $5 doll, it is purchased to avoid the shipping cost. For the buyer it is a good trade-off as he is spending $5 less than he should.

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