Chpt 12 BLog

What is a Cash discount?
http://www.wisegeek.com/what-is-a-cash-discount.htm

Summary:
"Cash discount is a marketing and cilent realations strategy that is often emplyed to provide consumers with added incentive to do business with a particular company." This statement from the article tells us that the main purpose of the cash discount is to get attention from other company, attract those company to do business with them. The cash discount will be issue only in the a certain period, and the amount of the cash discount will be either in percentage or a flat number. The second purpose is to encourage their customer to pay the payment as soon as possible which means not through credit card,loans,etc. Traditionally, the cash discount is applied if the customer pays the payment within 10 days after the invoice was issued. But recently, the cash discount will be applied only if the customer pays the payment in cash.

Connection:
This article links with chapter 12 because in chapter 12 it also talks about cash discount. This article introduced cash discount more deeply than the text book. In the Chapter it introduced the cash discount as in a traditional way, which customer pays the invoice within a certain period of time, then they will get the discount on their total payment. but the article tells us the role of the cash discount has been changed. Recently, instead of paying the payment early, they more prefer paying the payment in cash, because fees were charged if the payment is pay through credit cards.

Reflection:
People are really attracted to discount,sales and free stuffs. Everytime when a store is on sale, or a product is on discount, more people will likely to purchase at that period of the time. For example, the biggest sales day we have every year, the boxing day, every mall in vancouver is crowed with people, there are line-up infront of every store and its really hard to find a parking spot on that day. Cash discount is a really attractive idea, business use this to control our desires to buy stuffs, because every one is greedy.