Price Reductions Given to Channel Members to Encourage Them to Advertise

question 104

Multiple Choice

Price reductions given to channel members to encourage them to advertise or otherwise promote a firm's products locally are:

• A) quantity discounts.
• B) brokerage allowances.
• C) push money allowances.
• D) advertising allowances.
• E) trade incentives.

---

Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and labor.

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent or salaries.

Idle Capacity

Unused production capacity in a business, where the facilities, equipment, or workforce are not being fully utilized.

Underutilized Labor

A situation where employees are not working at their full capacity or skill level, leading to inefficiency and increased labor costs.