Question

Suppose a store offer a loyalty card. the stores punches the card at every visit and on the seventh visit the customer gets a 20 iscount. This is an example of?

Answer 1

Suppose a store offer a loyalty card. the stores punches the card at every visit and on the seventh visit the customer gets a 20 discount. This is an example of  cumulative quantity discount.

A cumulative quantity discount is  applied to the total items or quantity bought over a period of time. The buyer keep on  adding to the potential discount with each additional purchase and when a certain amount is collected he gets a discount from the company.

Such a policy helps in building repeat purchases.

Quantity discount are those reductions which are given in base price  as the result of a buyer purchasing some predetermined  or fixed quantity of merchandise.

To know more about the cumulative quantity discount here:

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