Which of the following is a reason behind companies' efforts to cut back on trade and other promotions?

Question

Quizplus · Accepted Answer

The rationale behind companies' efforts to cut back on trade and other promotions is: not to force brand-loyal customers to pay unusually high prices when a product is not on special, to allow consumers to benefit from a lower average shelf price, and to improve efficiencies in manufacturing and distribution systems. The intent of this type of policy is to give retailers a lower list price in exchange for cutting trade promotions. While the net cost of the product to retailers remains unchanged, retailers are losing promotional dollars that they controlled. In many situations, although trade allowances are supposed to be used for encouraging retail sales, it is not uncommon for retailers to take a portion of the trade allowance money as profit. To increase the retailer's inventories and reduce the manufacturer's inventories is an objective of trade sales promotions.

Which of the Following Is a Reason Behind Companies' Efforts