A cosmetics company offers incentives to its retailers for advertising its new shampoo by placing it in a special display unit near the billing counters.This incentive offered by the manufacturer is an example of a _____.

Question

Quizplus · Accepted Answer

The offer of incentives to retailers for advertising the new shampoo through a special display unit is an example of a promotional allowance. This is a common practice in the industry where manufacturers offer incentives to retailers for promoting their products over competitors. A promotional allowance is a form of trade promotion that offers retailers financial incentives or other benefits for promoting the manufacturer's products in their stores. Rebates, cash discounts, and trade-ins are other forms of trade promotions but do not apply to this scenario.

A Cosmetics Company Offers Incentives to Its Retailers for Advertising