What is the utility’s intention with regard to a volume discount strategy?

In the volume discount strategy, one is given a discount based on the quantity consumed. For utilities, this means that large consumers pay less for each unit of utility consumed. The reason for using volume discounts is to encourage large consumers from continued consumption of the same amount and to keep the prices of the utilities competitive compared to the competition.

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Academic.Tips. (2022, May 18). What is the utility's intention with regard to a volume discount strategy? https://academic.tips/question/what-is-the-utilitys-intention-with-regard-to-a-volume-discount-strategy/

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Academic.Tips. 2022. "What is the utility's intention with regard to a volume discount strategy?" May 18, 2022. https://academic.tips/question/what-is-the-utilitys-intention-with-regard-to-a-volume-discount-strategy/.

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Academic.Tips. "What is the utility's intention with regard to a volume discount strategy?" May 18, 2022. https://academic.tips/question/what-is-the-utilitys-intention-with-regard-to-a-volume-discount-strategy/.

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"What is the utility's intention with regard to a volume discount strategy?" Academic.Tips, 18 May 2022, academic.tips/question/what-is-the-utilitys-intention-with-regard-to-a-volume-discount-strategy/.

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