Loyalty rebate refers to a practice of discounting unit price if a customer
meets the minimum purchasing volume specifically designated to each
customer. Loyalty rebate is distinguished from traditional form of volume
discount, under which unit prices fall as purchasing volume increases, for
some reasons. First, benchmark volume (minimum purchasing volume) above
which a discount scheme comes into effect can be different for each customer.
Second, the purchasing requirement may be about either meeting the minimum
purchasing volume in a certain period of time or meeting the certain
percentage of the customer’s total purchase of a given product. Third, discount
is offered for the total purchase. In other words, if a customer reaches the
minimum purchasing volume, discounts will be offered on the total purchase,
being retroactively offered on the previous purchase as well, rather than being
offered merely on the additional purchase88.