A grain supplier to cattle farmers has developed a new grain mixture, Green Grain, with nutritional additives that approximate the nutrient mixture in grass. Farmers who feed their cattle this enriched grain can sell beef and milk that taste similar to grass-fed beef and have many of the nutritional benefits to humans of grass-fed beef or dairy at a significantly lower production cost than actual grass-fed beef or dairy.
-Green Grain marketers have established a positioning plan that stresses low price. Salespeople are expected to use transactional selling tactics and offer discounts and allowances to farmers as needed. Which type of discount would most likely be given to a farmer who agrees to put the Green Grain logo on the side of his barn and Green Grain signs along the road near his farm?
A)dealer allowance
B)trade discount
C)seasonal discount
D)promotional allowance
E)functional discount

Question

Quizplus · Accepted Answer

A promotional allowance is a discount given to a customer for promoting a product, in this case, displaying the Green Grain logo and signs. It is a form of trade promotion that encourages customers to promote the product to their own customers.

A Grain Supplier to Cattle Farmers Has Developed a New