A producer of plastic water bottles that can be attached to bikes gives retailers a 3 percent price reduction to advertise its products locally. This is an example of:
A) value pricing.
B) push money.
C) everyday low pricing.
D) an advertising allowance.
E) a cash discount.

Question

Quizplus · Accepted Answer

This is an example of an advertising allowance, as the producer is offering a price reduction to incentivize retailers to advertise their products.

A Producer of Plastic Water Bottles That Can Be Attached