Scenario 15-4
General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal.
-(Scenario 15-4)General Mills allows its retailers to deduct $2 from every box of cereal in the shipment it receives.This is an example of a(n):

Question

Scenario 15-4
General Mills, a breakfast cereal brand, faces strong competition in the dry cereal category from brands like Kellogg's and Quaker Oats. However, General Mills brands like Wheaties and Cheerios maintain a strong share of the market. As a manufacturer, General Mills knows it must stimulate consumer demand for its brands, but it must gain retailer support for these brands as well. Its market research shows that some consumers are very loyal to certain brands of cereal, but most consumers show some level of variety-seeking behavior in this product category. As a result, General Mills is constantly examining different sales promotion tools to stimulate consumers to consider its brands when shopping for breakfast cereal. 
-(Scenario 15-4)General Mills allows its retailers to deduct $2 from every box of cereal in the shipment it receives.This is an example of a(n):

Quizplus · Accepted Answer

An off-invoice allowance is a discount that is applied to the invoice for the ordered products. Therefore, General Mills allowing its retailers to deduct $2 from every box of cereal in the shipment it receives is an example of an off-invoice allowance. Slotting fees are fees paid by manufacturers to retailers to secure shelf space for their products. Merchandise allowances and bill-back allowances are also types of discounts, but they are applied to future purchases instead of being deducted from the invoice.

Scenario 15-4 General Mills, a Breakfast Cereal Brand, Faces Strong Competition in Competition