The sales force for Stanley Tool Corp. has been instructed to offer a 10 percent discount to its retailers on all units ordered in excess of the previous month's order amount. The offer will be extended to Stanley's independent retailers, applicable to several small hardware lines. The objective of this type of sales promotion is to
A) build up reseller inventories.
B) increase traffic in retail stores.
C) improve shelf space and displays.
D) reinforce advertising.
E) encourage trial purchases of a new product.

Question

Quizplus · Accepted Answer

The objective of offering a discount on units ordered in excess of the previous month's amount is to encourage retailers to order more products, thereby increasing their inventory levels. This strategy is aimed at building up reseller inventories.

The Sales Force for Stanley Tool Corp