Goode Paint is offering hardware stores a one-month deal to purchase its paints at 25 percent off the regular price. Goode hopes retailers will pass along these savings to consumers in the form of specials. Harmon Hardware, a small regional chain, purchases enough paint from Goode to last the chain for the next five months. Harmon Hardware is most likely engaging in:

Question

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Harmon Hardware is taking advantage of the one-month deal offered by Goode Paint by purchasing enough paint to last for the next five months. This is an example of forward buying, as the retailer is buying in advance to take advantage of the discounted price.

Goode Paint Is Offering Hardware Stores a One-Month Deal to Purchase