A manufacturer of leather sandals offers the reseller of the shoes a 10 percent discount in return for the retailer agreeing to be responsible for promoting the sandals. The manufacturer's 10 percent discount off the sales price is a form of ______ discount.

Question

Quizplus · Accepted Answer

A functional discount is provided to channel members who perform certain functions, such as selling, storing, and record keeping. In this case, the discount is given for the retailer's role in promoting the sandals, which is a specific function within the distribution channel.

A Manufacturer of Leather Sandals Offers the Reseller of the Shoes