Question

Conclusion of Effects on purchasing power of a customer due to discount

Answer 1

Purchasing power is the number and quality or value of goods and services that can be purchased with a unit of currency.  

Whenever there is a discount on different commodities, the purchasing power of a customer increases.

It means that the customer can buy more goods or services in the same amount of money.

Different companies offer discounts to their customers. They do for two purposes.

1. To enable the customer with less purchasing power to buy their product to increase their Sales.
2. To increase the Sales by selling their goods or services in bulk.

So it is a fact that discounts enable people to buy more things and enhance their purchasing power.

Answer 2

Purchasing power is an economic term and it denotes the ability of the consumer to buy the products and services with a particular unit of currency.

If people gets discount on the products or services they want to buy then they will end up buying more than what they have planned and as a result of the same the sale volume will increase and on the other hand the buying capacity of the people will increase too.