According to the general pricing model,in the short term,discounts and allowances offered by manufacturers have to be larger or more frequent than initially planned because:
A)there is an impending need to increase demand to profitable levels.
B)there is a need to prevent channel members from becoming independent manufacturers.
C)the price structure that has been fixed cannot be reviewed at regular intervals.
D)there is only one way for money to flow out of firms through the price-product mechanism.

Question

Quizplus · Accepted Answer

In the short term, discounts and allowances may need to be larger or more frequent than initially planned to increase demand to profitable levels. This is because the manufacturer may need to quickly move excess inventory or generate revenue to cover short-term expenses.

According to the General Pricing Model,in the Short Term,discounts and Allowances