Shoe Trends, a company that manufactures formal shoes for men and women, offers to give its customers $10 for an old pair of shoes when they buy a new pair. In essence, they're reducing the price of the new shoes by $10. What is this type of price adjustment called?
A) functional discount
B) captive product pricing
C) seasonal discount
D) trade-in allowance
E) by-product pricing

Question

Quizplus · Accepted Answer

This is called a trade-in allowance, where a discount is offered to customers when they give in their old product in exchange for a new one.

Shoe Trends, a Company That Manufactures Formal Shoes for Men