Which of the following statements regarding quantity discounts is most accurate?
A)Cumulative quantity discounts encourage repeat buying by a single customer to a far greater degree than do noncumulative quantity discounts.
B)Noncumulative quantity discounts encourage repeat buying by a single customer to a far greater degree than do cumulative quantity discounts.
C)Quantity discounts are primarily used to undercut competitors' prices.
D)Noncumulative quantity discounts encourage smaller long term repeat purchases rather than less frequent large quantity purchases.
E)Quantity discounts can basically be used only once with each reseller or the price will become too customary.

Question

Quizplus · Accepted Answer

Cumulative quantity discounts encourage repeat buying by a single customer because they provide increasing discounts as the customer purchases more over time, incentivizing the customer to keep buying from the same supplier. Noncumulative quantity discounts, on the other hand, only offer discounts on specific, larger quantity purchases, which may not encourage repeat buying to the same degree.

Which of the Following Statements Regarding Quantity Discounts Is Most