Cash payments or an extra amount of free goods awarded sellers in the channel for undertaking certain advertising or selling activities to promote the product is referred to as a

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The described activity is commonly known as a promotional allowance, which consists of a payment or free goods provided to intermediaries in exchange for promoting the product. Quantity discounts are based on the volume of purchases, not on promotion efforts. Seasonal discounts are temporary price reductions to sell seasonal or slow-moving products, not to encourage promotion. Purchase inducements and flexible pricing policies are not defined terms in this context.

Cash Payments or an Extra Amount of Free Goods Awarded