A temporary price reduction designed to encourage larger purchases by distributors is referred to as a

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A trade allowance is a temporary price reduction given to distributors or retailers in exchange for larger purchases. Rebates are given directly to end consumers, performance allowances are given for achieving certain sales goals, merchandising allowances are given for displaying products in a certain way, and refund offers are given to end consumers for returning a product.

A Temporary Price Reduction Designed to Encourage Larger Purchases by Distributors