Blue Buffalo dog food offers its retailers a 30 percent discount on its dog food lines for one month in the hope that retailers will pass the savings on to consumers,thereby increasing Blue Buffalo's market share.However,Sit Happens,a small local retailer,buys enough dog food to sell at a normal rate for the next year.Sit happens is engaging in

Question

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Sit Happens is engaging in forward buying, which is when a retailer purchases a large quantity of a product at a discounted rate and plans to sell it at a regular price in the future. The retailer does not pass on the savings to the consumer and instead profits from the margin between the discounted cost and the regular selling price.

Blue Buffalo Dog Food Offers Its Retailers a 30 Percent