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Discounts and Allowances 14.3.2

Marketing

AB
quantity discountOffered to customers who buy large quantities
Seasonal discountOffered to customers who buy during times of the year when sales are normally low.
Cash discountOffered to customers who pay cash rather than using credit or who pay their credit accounts quickly.
Trade discountreduction in price offered to businesses at various levels in a channel of distribution (wholesalers and retailers)
Trade-in allowanceReduction in price in exchange for the customer's old product when a new one is purchased.
Advertising allowancePrice reduction or cash payment given to channel members who participate in advertising the product.
CouponPrice reduction offered by a channel member through a printed promotional certificate.
RebateSpecific amount of money returned to the customer after a purchase is made.


Business Educator
Tri-County High School
Wolcott, IN

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