An arrangement in which a manufacturer pays a certain amount of a retailer's media costs for advertising the manufacturer's products is called:
A)a buy-back allowance.
B)a merchandise allowance.
C)premium money.
D)push money.
E)cooperative advertising.

Question

Quizplus · Accepted Answer

The arrangement described is known as cooperative advertising. In this type of promotion, the manufacturer and the retailer share the cost of advertising the manufacturer's products. The manufacturer pays a portion of the retailer's media costs in exchange for the retailer featuring the manufacturer's products in the advertisement. This helps both parties by increasing the visibility and sales of the manufacturer's products and driving traffic to the retailer's store.

An Arrangement in Which a Manufacturer Pays a Certain Amount