base price are offered to resellers in the marketing channel on the basis of 1

Base price are offered to resellers in the marketing

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base price are offered to resellers in the marketing channel on the basis of (1) where they are in the channel and (2) the marketing activities they are expected to perform in the future. 14-259 TRADE (FUNCTIONAL) DISCOUNTS COMPREHENSION Functional discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and a. the size of the order. b. the frequency of the order. c. when orders are placed during the year. d. the length of the relationship with the manufacturer. e. the marketing activities they are expected to perform in the future. Answer: e Page(s): 359 LO: 3 AACSB: Analytic QD: Medium - 86 -
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Rationale: To reward wholesalers and retailers for marketing functions they will perform in the future, a manufacturer often gives trade, or functional discounts. These reductions off the list or base price are offered to resellers in the marketing channel on the basis of (1) where they are in the channel and (2) the marketing activities they are expected to perform in the future. 14-260 TRADE (FUNCTIONAL) DISCOUNTS COMPREHENSION Trade discounts are offered to resellers in the marketing channel on the basis of where they are in the channel and a. the marketing activities they are expected to perform in the future. b. the frequency of the order. c. when orders are placed during the year. d. the length of the relationship with the manufacturer. e. the size of the order. Answer: a Page(s): 359 LO: 3 AACSB: Analytic QD: Medium Rationale: To reward wholesalers and retailers for marketing functions they will perform in the future, a manufacturer often gives trade, or functional discounts. These reductions off the list or base price are offered to resellers in the marketing channel on the basis of (1) where they are in the channel and (2) the marketing activities they are expected to perform in the future. 14-261 TRADE (FUNCTIONAL) DISCOUNTS COMPREHENSION Trade discounts are offered to resellers in the marketing channel on the basis of the marketing activities they are expected to perform in the future and a. the frequency of the order. b. where they are in the channel. c. when orders are placed during the year. d. the length of the relationship with the manufacturer. e. the size of the order. Answer: b Page(s): 359 LO: 3 AACSB: Analytic QD: Medium Rationale: To reward wholesalers and retailers for marketing functions they will perform in the future, a manufacturer often gives trade, or functional discounts. These reductions off the list or base price are offered to resellers in the marketing channel on the basis of (1) where they are in the channel and (2) the marketing activities they are expected to perform in the future. 14-262 TRADE (FUNCTIONAL) DISCOUNTS COMPREHENSION Suppose a manufacturer quotes price in the following form: List price—$100 less 30/10/5. When calculating this trade discount, the first number “30” in the percentage sequence always refers to the a. discount to the ultimate consumer.
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