What does a cumulative quantity discount involve?

A cumulative quantity discount involves the total amount purchased over a specific period. This type of discount rewards customers for their cumulative purchases, encouraging them to buy more over time. Essentially, as customers reach certain thresholds in their total purchase amounts within a set timeframe, they become eligible for discounts based on the total quantity acquired. This strategy is beneficial for both customers who can save money in the long run and sellers who can foster brand loyalty and increase sales volume.

The other options do not accurately capture the essence of a cumulative quantity discount. A one-time purchase discount based on total value refers to a single transaction benefit, while a fixed discount for every purchase made suggests a price reduction for each individual purchase rather than considering the total over time. A cash discount for immediate payment relates to saving based on prompt payment instead of the aggregate purchase behavior.