The objectives of trade allowances for retailers often conflict with the objectives of manufacturers.

Question

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Trade allowances given by manufacturers to retailers are incentives or financial benefits offered to retailers to encourage them to stock, promote and sell their products. However, these objectives of trade allowances may conflict with the objectives of manufacturers who aim to increase profits and maintain control over their products. For instance, manufacturers may offer trade allowances to retailers who purchase large quantities of their products, but retailers may use these allowances to negotiate lower prices or promote competing products, which may negatively affect the manufacturer's profitability or brand image. Therefore, the objectives of trade allowances for retailers often conflict with the objectives of manufacturers.

The Objectives of Trade Allowances for Retailers Often Conflict with the Objectives