When a channel intermediary is compensated for the ordinary services and tasks performed within the channel of distribution,the compensation usually comes in the form of a discount from base price.This discount is called a:
A) seasonal discount
B) promotional allowance
C) cumulative or noncumulative quantity discount
D) functional (or trade)discount
E) rebate or refund

Question

Quizplus · Accepted Answer

A functional discount (trade discount)is a discount to wholesalers and retailers for performing channel functions.

When a Channel Intermediary Is Compensated for the Ordinary Services