Cumulative quantity discounts tend to bind customers to a single supply source.

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Cumulative quantity discounts are offered by suppliers to incentivize customers to purchase larger quantities of goods or services over time. As customers continue to meet the specified quantity thresholds, they qualify for progressively larger discounts. This tends to bind customers to a single supply source because they have invested time and resources into building a relationship with the supplier, and they may not want to go through the process of finding a new supplier that can offer an equivalent level of discounts or service.

Cumulative Quantity Discounts Tend to Bind Customers to a Single