What is the primary goal of volume discount pricing?

The primary goal of volume discount pricing is to increase customer loyalty. This pricing strategy involves offering a lower price per unit when customers buy in larger quantities. By providing discounts for bulk purchases, businesses incentivize customers to choose their products over competitors, which can lead to repeat purchases and long-term relationships. When customers feel they are getting a good deal, they are more likely to return, thus fostering loyalty toward the brand or business.

While encouraging small purchases, reducing fixed costs per unit, and promoting impulse buying may have their own implications in a business context, they do not capture the essence of volume discount pricing as effectively as increasing customer loyalty. The main objective of this strategy is to build a dedicated customer base that feels valued and rewarded for purchasing larger quantities.