When Luxury Motors gives price reductions to its new car dealers to reward them for participating in advertising and sales support programs,the firm is granting ________.
A) cash discounts
B) seasonal discounts
C) quantity discounts
D) promotional allowances
E) trade-in allowances

Question

Quizplus · Accepted Answer

Promotional allowances are price reductions offered by a manufacturer to motivate intermediaries to advertise or otherwise promote its products. In the scenario presented, Luxury Motors is offering price reductions to its dealers as a reward for participating in advertising and sales support programs, which is an example of a promotional allowance.

When Luxury Motors Gives Price Reductions to Its New Car