The Panama Jack Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.
A) trade
B) cumulative
C) noncumulative
D) push
E) intermediary

Question

Quizplus · Accepted Answer

Trade discounts are offered by manufacturers to middlemen to encourage certain channel activities, such as promoting a particular product line or achieving a certain sales volume. In this case, the Panama Jack Company is using discounts as a promotional tool for its ECO-shirt line, which falls under the category of trade discounts.

The Panama Jack Company Utilizes a Special Strategy to Sell