Sherwin Williams Develops Strong Relationships with Contractors and Facility Managers

question 151

Multiple Choice

Sherwin Williams develops strong relationships with contractors and facility managers to develop loyalty and encourage them to purchase a majority of their paint and supplies from the store.Sherwin Williams provides incentives to contractors and bases prices according to the volume of paint a contractor purchases within a given quarter.Sherwin Williams includes the cumulative volume purchased on each invoice so each contractor can track their purchases and estimate the amount of rebate or refund they could earn at the end of each quarter.Sherwin Williams is utilizing a(n) : ​

• A)​cumulative quantity discounts
• B)​trade discount
• C)​promotional allowance
• D)​cash discount

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Definitions:

Cartel

A coalition of producers or vendors aimed at keeping prices elevated by limiting competitive practices.

Concentration Ratio

Concentration ratio is a measure of the total output produced in an industry by a given number of firms, indicating the level of market competition.

Sales

The activities involved in selling goods or services to consumers or other businesses, generating revenue.

Concentration Ratio

A measure of the total output produced in an industry by a given number of firms, used to assess the level of market concentration and competition.