Now universally expected quantity discounts can be an important component of a firm's marketing strategy. However, companies have discovered that inflation, mergers, and increasingly sophisticated buyers collectively generate higher discount payouts without any increase in volume. Steps can be taken to preserve the benefits originally associated with discount structures. The author outlines the basic features of a computer-assisted method for making these necessary revisions.
Get full access to this article
View all access options for this article.
References
1.
CrowtherJohn F. (1964), “Rationale for Quantity Discounts,”Harvard Business Review.42 (March–April), 121–7.
2.
HeirritzStuart F., and FarrelPaul V. (1971), Purchasing, Principles and Applications, 5th edition, Englewood Cliffs, New Jersey: Prentice-Hall, Inc.
3.
IgnizioJ. P. (1976), Goal Programming and Extensions, Lexington, Massachusetts: D. C. Heath and Co.
4.
KudrnaDennis A. (1975), Purchasing Manager's Decision Handbook, Boston: Cahners Publishing Company, Inc.
5.
McCarthyE. Jerome (1975), Basic Marketing, A Managerial Approach, 5th edition, Homewood, Illinois: Richard D. Irwin, Inc.
6.
MonroeKent B., and Delia BittaAlbert J. (1978), “Model for Pricing Decisions,”Journal of Marketing Research, 15 (August), 413–28.
7.
RachmanDavid J. (1975), Retail Strategy and Structure. 2nd edition, Englewood Cliffs, New Jersey: Prentice-Hall, Inc.
