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Generally there are two types: Cumulative quantity discounts, also called accumulation discounts, are price reductions based on the quantity purchased over a set period of time.

The expectation is that they will impose an implied switching cost and thereby bond the purchaser to the seller.

On a shorter time scale, a happy hour may fall in this category.

Generally, this discount is referred to as "X-Dating" or "Ex-Dating".

Examples of these functions are warehousing and shelf stocking.

Last modified 05-Jun-2020 03:16