A promotional allowance is an incentive offered by manufacturers to retailers to:
A)reward a retailer for not advertising a product below a certain price.
B)provide one-time reductions in the list price of products for purchasers of large quantities.
C)refund the shipping costs paid by the retailer for home-delivery of products.
D)return a certain amount spent by the retailers on advertising and providing sales support.

Question

Quizplus · Accepted Answer

A promotional allowance is a type of sales promotion in which manufacturers offer financial incentives to retailers for spending on advertising, sales promotion, and other marketing activities. In simple terms, manufacturers pay a certain percentage of the cost of advertising or promotional activities carried out by the retailer, which works as a reimbursement for these expenses. Therefore, option D is the most appropriate choice as it fits the definition of promotional allowance.

A Promotional Allowance Is an Incentive Offered by Manufacturers to Retailers