What type of pricing strategy includes techniques like "buy 20, get one free"?

Volume discount pricing is a strategy that encourages customers to purchase larger quantities of a product by offering reductions on the price per unit as the quantity increases. The "buy 20, get one free" technique is a clear example of this, as it incentivizes customers to buy more than they initially might want, thereby increasing the overall sales volume for the business. This approach effectively rewards bulk purchases, ultimately benefiting the seller through higher sales numbers while providing customers with perceived value.

In contrast, cash discount pricing involves reductions for early payments, psychological pricing focuses on consumer perceptions by setting prices that will elicit a desired response (like pricing something at $9.99 instead of $10), and loss leader pricing entails pricing certain products at a loss to attract customers with the hope they will purchase other items at normal markup. None of these methods emphasize incentivizing larger purchases in the same manner as volume discount pricing does.