When provided with an offer of a 10 percent discount to purchase electronic calculators within the next 30 days, Target buys extra calculators to take advantage of the price discount. Target will offer the calculator to consumers at a discount during the special sale, but then have additional calculators to sell when the sale is over. This is an example of:

Question

Quizplus · Accepted Answer

This scenario describes forward buying, which is when a retailer purchases more product than they need in order to take advantage of a temporary discount or promotion. The excess product can then either be sold at regular price after the promotion or stored for future use. This strategy allows the retailer to save money on their inventory costs and increase their profit margins. The other options, such as off-invoice allowances, slotting fees, and diversion, do not accurately describe the situation presented in the question.

When Provided with an Offer of a 10 Percent Discount