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Sarah works from home and her internet connectivity is dropping sporadically making it difficult to get her work done. She has increasingly become dissatisfied with her internet provider and finally has reached her breaking point. Sarah calls her internet provider to complain. In an attempt to remedy the situation, the CSR offers Sarah 20% off her monthly charges for the next 12 months. Sarah accepts. What type of discount is described in this scenario?
Correct Answer: C
In this scenario, the discount offered by the customer service representative (CSR) to Sarah is a contract- based discount. This type of discount is applied as part of an agreement or contract renegotiation in response to a specific issue or to retain a customer, in this case, due to dissatisfaction with the service. The discount applies to future billing cycles (12 months), indicating it modifies the terms of the ongoing service contract rather than just a single order or account-wide policy.