A producer of household batteries for flashlights, radios, and other small electronic devices wants to increase its sales relative to its competitors. The company enters into an arrangement with a supplier of bicycles to develop an incentive for retail buyers to order more batteries. Salespeople for the battery company tell each buyer that for every 20 cases of batteries ordered, the buyer will get a new bicycle. The buyer can keep the bicycle, or use it as part of an in-store contest promotion. The battery company's promotion effort aimed at retail buyers is:

Question

Quizplus · Accepted Answer

The promotion effort is an example of "pushing in the channel," where the company incentivizes retailers to stock more of their product by offering them a reward, in this case, a bicycle.

A Producer of Household Batteries for Flashlights, Radios, and Other