What is the term for a price reduction offered by manufacturers to intermediaries such as wholesalers or retailers, in exchange for performance of specified functions or purchasing during special periods?

Question

Quizplus · Accepted Answer

A trade allowance is a price reduction offered by manufacturers to intermediaries such as wholesalers or retailers. This is usually in exchange for the performance of specified functions or purchasing during special periods. Therefore, option D is the correct answer.

Option A is incorrect because a point-of-purchase discount is a price reduction offered to consumers at the point of sale. Option B is incorrect because pull money is a promotion where a manufacturer offers money to incentivize sales representatives to promote their product over competitors. Option C is incorrect because a quantity discount is a price reduction offered to a customer based on the quantity purchased, and is not necessarily tied to any specific functions or special periods.

What Is the Term for a Price Reduction Offered by Manufacturers