Discounts and allowances are effective incentives used primarily to:
A)maintain or increase inventory levels in the distribution channel.
B)remind customers of an existing brand or company.
C)promote consumer products to consumers.
D)provide special-purpose training to employees.
E)reduce the supply of certain items in the distribution network.

Question

Quizplus · Accepted Answer

Discounts and allowances are often used to encourage distributors to maintain or increase their inventory levels, which can help to ensure that products are readily available to consumers when they want to make a purchase. By offering discounts or other incentives, businesses can incentivize their partner companies to keep a certain level of inventory on hand.

Answer: C
 Discounts and allowances can also be used to promote consumer products directly to customers. For example, a business might offer a coupon or discount code for a new product they are launching, encouraging consumers to try the product and potentially become regular customers.

Therefore, both options A and C can be considered the best choice.

Discounts and Allowances Are Effective Incentives Used Primarily To