As the owner of R&R Homestead Kitchen, a small mail-order company, Pat Colburn is concerned about the number of unprofitable small orders the firm is receiving. What kind of strategy can she adopt to increase the average order size?
A) change from selective to intensive distribution
B) use only direct channels of distribution
C) offer noncumulative quantity discounts
D) offer functional discounts
E) do all of the above

Question

Quizplus · Accepted Answer

Offering noncumulative quantity discounts encourages customers to buy more at one time to take advantage of the discount, thus increasing the average order size.

As the Owner of R&R Homestead Kitchen, a Small Mail-Order