Multiple Choice Question

A firm's goal in offering a trade discount is to Blank______.
Multiple choice question.

encourage customers to buy larger quantities

encourage customers to pay their bills quickly

reward wholesalers and retailers for marketing functions

encourage buyers to stock inventory earlier than their normal demand would require

1 answer

The correct answer is:

reward wholesalers and retailers for marketing functions.

Trade discounts are typically offered to incentivize wholesalers and retailers for their role in the distribution and marketing of the product.