The Discounting of Discounts and Promotion Thresholds


What is a threshold discount?

    A threshold discount is a discount that is given to customers when the total for a transaction reaches one or more specified amounts. For example, you could create a discount that gives a 10 percent discount for purchases over 100.00 and a flat 25.00 discount for totals over 200.00.

What is discounts and promotions?

    Discounts and Promotions is a mechanism that allows to adjust prices based on different rules. External modules can extend this definition by providing additional rules (Discount Types) implementations. Discounts and Promotions, formerly Price Adjustments, defines rules to be applied to invoice and order lines to adjust prices.

What is the discount attributable to the goods or services?

    the goods or services in each bundle; and – the discount attribut able to each bundle of goods or services is substantially the same as the discount in the contract, and an analysis of the goods or services in each bundle provides observable evidence of the performance obligation(s) to which the entire discount in the contract belongs.

What are the normative results of discounting?

    More generally,the normative results indicate that i) ifdeals become more effective in the current period,i.e.,if con-sumers are more price sensitive,promotions should be usedmore frequently; and ii) as the negative dynamic effect ofdiscounts on sales increases,the optimal level of discountingshould go down.
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