Abstract

In the electronic commerce market, the minimum order quantity or the minimum order value constraints are present.A minimum quantity of the commodity bundle or the minimum purchase value are to be ordered to get the commodity with or without discounts offers that is selected to buy.This acts as a source of nonlinear pricing if the discount rule is set strategically.The present paper gives a theoretical idea of a nonlinear pricing strategy when the minimum order constraints are present with a discount rate.A theoretical understanding has been explained here, where the buyer would buy more than the requirements if the discount rules are set strategically along with the minimum order constraints.

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