Which of the Following Statements Describes a Major Concern Marketers

question 90

Multiple Choice

Which of the following statements describes a major concern marketers have with trade allowances?

• A)Trade allowances often are not passed on to consumers in the form of lower prices.
• B)Trade allowances detract from the image of the retailers who carry their brands.
• C)Consumers pocket most of the savings from trade promotion discounts.
• D)Trade allowances encourage retailers to stock and promote the marketers' products on a regular basis.
• E)All of the above statements describe a major concern marketers have with trade allowances.

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Definitions:

Corporate Headquarters

The main office or center of operations for a corporation, where key managerial and administrative activities are conducted.

LIFO Inventory Method

Last In, First Out, an inventory valuation method where the goods purchased last are the first to be sold.

Gross Profit

The difference between revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

Cost of Goods Available for Sale

The total cost of merchandise that a company can sell during a certain period, including both the cost of goods purchased and the cost of goods manufactured.