The type of trade promotion discount in which manufacturers agree to reduce the price to the retailer in exchange for the retailer's agreement to feature the manufacturer's products is some way is called a(n) ?
Correct answer: B. allowance
- A. discount
- B. allowance
- C. premium
- D. rebate
Explanation
A trade allowance is a price reduction offered to a retailer for performing a promotional activity, such as featuring the manufacturer's product. A rebate is normally a refund after purchase, while a premium is an additional incentive or gift.
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