When a channel intermediary is compensated for the ordinary services and tasks performed within the channel of distribution,the compensation usually comes in the form of a discount from base price.What is this discount called?
A)promotional allowance.
B)cumulative or noncumulative quantity discount
C)functional (or trade)discount.
D)rebate allowance

Question

Quizplus · Accepted Answer

Functional (or trade) discount is the discount offered to channel intermediaries as compensation for their routine activities and services within the channel of distribution. This discount is subtracted from the base price and reflects the intermediary's "functional" role in the distribution of goods. Promotional allowance is a discount offered by manufacturers to retailers for promoting their products. Cumulative or noncumulative quantity discounts are discounts offered based on the quantity of products purchased. Rebate allowance is a refund of part of the purchase price.

When a Channel Intermediary Is Compensated for the Ordinary Services