Which of the following is true of a trade-in allowance?
A)It is a price reduction to stimulate sales of newly introduced products.
B)It allows managers to reduce the effective price without reducing the list price.
C)It forces managers to reduce the list price.
D)It is used to save old products from being removed from the market.

Question

Quizplus · Accepted Answer

A trade-in allowance is a price reduction given for used products when similar new products are bought.Trade-ins give the marketing manager an easy way to lower the effective price without reducing list price.

Which of the Following Is True of a Trade-In Allowance