Purchase quantity discounts and open order rescheduling in an assemble-to-order environment: The hidden economic tradeoffs

Purpose – This paper aims to examine how consumers evaluate and respond after failing to receive the promotional price for a quantity discount because the minimum purchase requirement (MinPR) is out of reach. Although quantity discounts are effective in terms of increasing sales volume, the outcome of using them is not always positive. Design/methodology/approach – Two 2 × 2 experiments are carried out to test the research hypotheses in the context of apparel shopping. Findings – The results of Experiment 1 demonstrate that offering quantity discounts with a high MinPR (e.g. “4 for 30 per cent off”) can result in greater willingness to buy (WTB) a single product at the full price than offering promotions with a low MinPR (e.g. “2 for 30 per cent off”) in the wake of a missed quantity discount. In other words, the purchase quantity has a positive effect on the consumers’ WTB even when they are not able to take advantage of the discount. However, this relationship weakens when the selection of discounted items is limited (i.e. the scope of the promotion is narrow). The results of Experiment 2 reveal that when the missed quantity discount is based on dollars rather than on the number of pieces (e.g. “Buy $100, get 30 per cent off” vs “Buy four pieces, get 30 per cent off”), the effect of purchase quantity on WTB is enhanced. Finally, perceived closeness of purchase outcome to the MinPR mediates the effect of purchase quantity on WTB. Research limitations/implications – To maximize internal validity, hypothetical scenarios were used as stimuli rather than an actual consumption experience, and the setting involved only a single product category (clothing). Future work including other types of merchandise and a more natural setting is needed to generalize our findings. Practical implications – The purchase quantity or MinPR serves as a reference point that influences consumers’ purchase decisions, even those who do not buy enough to qualify for the price reduction. Our findings suggest that retailers should specify a relatively high MinPR for quantity discounts. In addition, proper selection of the promotional scope and discount base will significantly improve consumers’ behavioral reactions when they are not able to take advantage of a quantity discount. Originality/value – The primary contribution of this article to the marketing literature is that it provides empirical results that shed some light on the situational influences that missing a quantity discount has on the consumer’s WTB a single product at the regular price, and what the mechanisms for the purchase quantity effect might be.

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Fruit and vegetable expenditure disparities: evidence from Chile

British Food Journal ◽

10.1108/bfj-06-2018-0365 ◽

2019 ◽

Vol 121 (6) ◽

pp. 1203-1219 ◽

Cited By ~ 1

Author(s):

Pia Carreño ◽

Andres Silva

Keyword(s):

Low Income ◽

Social Impact ◽

Quantity Discounts ◽

Fruit And Vegetable ◽

Data Set ◽

Content Type ◽

Traditional Markets ◽

Relevant Role ◽

Purchase Quantity ◽

Low Income Households

Purpose The purpose of this paper is to explore fruit and vegetable (FV) procurement disparity across income groups. Design/methodology/approach This study uses mean comparison and quintile regression to explain FVs variations. Findings Households from the highest income quantile spend more than two times on FVs than households from the lowest quantile; however, this expenditure disparity is largely mitigated in terms of purchase quantity. This paper presents evidence that, rather than quantity discounts or income neighborhood, the type of store (traditional markets vs supermarkets) plays a relevant role in explaining the smaller gap in terms of purchase quantity. Research limitations/implications Traditional markets help low-income households access low-cost FVs. Social implications The authors generate evidence to show that traditional markets play a relevant role to supply affordable FV to low-income households. Originality/value The paper used a high-quality and uncommon data set. It is a topic of high social impact.

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Some Laws of Quantity Discounts. II

Journal of Business of the University of Chicago ◽

10.1086/232092 ◽

1930 ◽

Vol 3 (1) ◽

pp. 51

Author(s):

W. H. S. Stevens

Keyword(s):

Quantity Discounts

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The Decline and Fall of Quantity Discounts: The Quantity Limit Rule in Rubber Tires and Tubes

The Journal of Business ◽

10.1086/294041 ◽

1954 ◽

Vol 27 (3) ◽

pp. 225

Author(s):

John S. McGee

Keyword(s):

Quantity Discounts

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Examining the Neighborhood Attributes of Recently Housed Partner Violence Survivors in Rapid Rehousing

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph18084177 ◽

2021 ◽

Vol 18 (8) ◽

pp. 4177

Author(s):

Charvonne N. Holliday ◽

Kristin Bevilacqua ◽

Karen Trister Grace ◽

Langan Denhard ◽

Arshdeep Kaur ◽

...

Keyword(s):

Partner Violence ◽

Housing Affordability ◽

Structural Racism ◽

Census Tracts ◽

Social Familiarity ◽

Choropleth Maps ◽

Economic Tradeoffs ◽

Safety And Stability ◽

Depth Interviews ◽

Neighborhood Level

Survivors’ considerations for re-housing following intimate partner violence (IPV) are understudied despite likely neighborhood-level influences on women’s safety. We assess housing priorities and predictors of re-housing location among recent IPV survivors (n = 54) in Rapid Re-housing (RRH) in the Baltimore-Washington Metropolitan Area. Choropleth maps depict residential location relative to census tract characteristics (neighborhood deprivation index (NDI) and residential segregation) derived from American Community Survey data (2013–2017). Linear regression measured associations between women’s individual, economic, and social factors and NDI and segregation. In-depth interviews (n = 16) contextualize quantitative findings. Overall, survivors re-housed in significantly more deprived and racially segregated census tracts within their respective regions. In adjusted models, trouble securing housing (B = 0.74, 95% CI: 0.13, 1.34), comfortability with proximity to loved ones (B = 0.75, 95% CI: 0.02, 1.48), and being unsure (vs unlikely) about IPV risk (B = −0.76, 95% CI: −1.39, −0.14) were significantly associated with NDI. Economic dependence on an abusive partner (B = −0.31, 95% CI: −0.56, −0.06) predicted re-housing in segregated census tracts; occasional stress about housing affordability (B = 0.39, 95% CI: 0.04, 0.75) predicted re-housing in less segregated census tracts. Qualitative results contextualize economic (affordability), safety, and social (familiarity) re-housing considerations and process impacts (inspection delays). Structural racism, including discriminatory housing practices, intersect with gender, exacerbating challenges among survivors of severe IPV. This mixed-methods study further highlights the significant economic tradeoffs for safety and stability, where the prioritization of safety may exacerbate economic devastation for IPV survivors. Findings will inform programmatic policies for RRH practices among survivors.

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