When a channel intermediary is compensated for the ordinary services and tasks performed within the channel of distribution,the compensation,usually in the form of a discount from base price,is called a:
A) seasonal discount
B) promotional allowance
C) cumulative or noncumulative quantity discount
D) functional (or trade)discount
E) rebate or refund

Question

Quizplus · Accepted Answer

The compensation that is received by a channel intermediary for the ordinary services and tasks performed within the channel of distribution is called a functional (or trade) discount. This type of discount is usually in the form of a reduction from the base price and is provided as compensation for the intermediary's role in the distribution process. Therefore, option D is the best choice.

When a Channel Intermediary Is Compensated for the Ordinary Services