A concession in price in business markets to achieve a desired goal is called a(n)
A) allowance.
B) objective-oriented discount.
C) cash discount.
D) trade discount.
E) cumulative discount.

Question

Quizplus · Accepted Answer

An allowance is a reduction in price granted to a customer to achieve a desired goal such as inducing them to purchase a larger quantity or to promote a certain product. This type of concession is often used in business markets as a negotiating tool. Trade discounts, cash discounts, and cumulative discounts are all price reductions, but they are not necessarily tied to achieving a specific goal. Objective-oriented discounts are not a recognized term in pricing practices.

A Concession in Price in Business Markets to Achieve a Desired