GK
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Select the explanation for merchandising-related discounts, Reduction in price as a result of buying in larger quantities
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Cash discounts
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Quantity discounts
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Trade discounts
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Seasonal discounts
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Explanation:
Detailed explanation-1: -A volume discount is a price reduction offered to buyers who purchase in bulk quantities.
Detailed explanation-2: -Volume discount refers to offering discounted prices to motivate customers to purchase larger quantities of products or services.
Detailed explanation-3: -Cash discounts are reductions on base price given to customers for paying cash or within some short time period. For example, a 2 percent discount on bills paid within 10 days is a cash discount. The purpose is generally to accelerate the cash flow of the organization and to reduce transaction costs.
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