Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a ________.
A) functional discount
B) cash discount
C) seasonal discount
D) trade-in allowance
E) by-product allowance

Question

Quizplus · Accepted Answer

This is an example of a trade-in allowance, where customers receive a discount for exchanging an old product for a new one.

Vac "N" Sew, a Consumer Electronics Outlet, Offers a Price