What are the different types of price discounts and allowances?
What will be an ideal response?
The different types of price discounts and allowances are:
• Discount - This is a price reduction given to buyers who pay their bills promptly.
• Quantity discount - This is a price reduction offered to those who buy in large volumes.
• Functional discount - This is offered by a manufacturer to trade-channel members if they perform certain functions like selling, storing, and record keeping.
• Seasonal discount - This is a price reduction given to those who buy merchandise or services out of season.
• Allowance - This is an extra payment designed to gain reseller participation in special programs. These are of two types:
i. Trade-in allowances - These are granted for turning in an old item when buying a new one.
ii. Promotional allowances - These reward dealers for participating in advertising and sales support programs.
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Dream Homes is an appliance store. It recently launched its own brand of freezers in order to build customer loyalty. The store launched three different models to cater to low-, middle-, and high-income groups. The freezers are also priced accordingly. These freezers are exclusive to Dream Homes and cater to all customer segments. This pricing strategy involving price points within a merchandise category is known as
A. odd pricing, B. price bundling. C. price lining. D. leader pricing. E. zone pricing.
__________ is a pool of money employees can spend on capital improvements if a company meets its profitability goals.
A. Profit-sharing fund B. Employee stock ownership C. Intracapital D. Skill-based pay
Which answer is not one of the many ways in which we communicate?
a. Assumptions and mind reading b. Formally and informally c. Spoken words and body language d. With positive and negative emotions
What does the relational view of competitive advantage propose?
What will be an ideal response?