ao Sophisticated Pricing Strategies $-$ End of Chapter Problem

You've been browsing some new styles on Old Navy's website, where you often shop, and have filled your virtual cart with a few nice items. But you leave the site without completing your purchase. A few days later, Old Navy sends you an e$-$mail with a $10\%$ discount code to apply to your cart, within a limited time frame. Why do companies like Old Navy send specialized offers like this one?

Old Navy is engaging in

price discrimination.

hurdle pricing.

quantity discounting.

group pricing.