Each time a customer purchases a snow cone, they receive a stamp on a punch card. After 10 stamps, the customer receives a free snow cone. What type of sales promotion is this?

This type of sales promotion is classified as a loyalty program. Loyalty programs are designed to encourage repeat purchases by rewarding customers for their continued patronage. In this scenario, customers earn stamps for each snow cone purchased, and after collecting a certain number of stamps, they receive a free snow cone.

The primary goal of a loyalty program is to build customer loyalty, increasing the likelihood that customers will return and make additional purchases. By offering incentives like a free snow cone, the business not only fosters a deeper relationship with the customer but also encourages them to choose their brand over competitors.

Other types of promotions, such as discount offers or rebate programs, focus on immediate financial incentives rather than fostering long-term loyalty. A referral program typically involves rewards for bringing in new customers rather than for repeat purchases. Thus, the scheme described aligns perfectly with the principles of a loyalty program, making it the correct choice.